General Electric (NYSE:GE) on Tuesday said demand for jet engines and power equipment in Q4 boosted its profit and revenue from a year earlier. GE (GE) shares rose 1.2% to close at $80.70.
The company's adjusted EPS rose 51% from a year earlier to $1.24, beating the consensus estimate of $1.16. Revenue rose 7% to $21.8 billion.
GE (GE) forecast that revenue would grow by a high single-digit percentage in 2023, and that adjusted EPS would be in a range $1.60 to $2.00.
Its guidance also included $3.4 billion to $4.2 billion in free cash flow. GE (GE) last year had lowered its guidance by about $1 billion from a previously forecast range of $5.5 billion to $6.5 billion.
Following this month's spinoff of its healthcare unit, GE (GE) is focusing on GE Aerospace, which makes jet engines, and a group of energy businesses that next year will form a separate company called GE Vernova.
GE Aerospace is forecast to generate an operating profit of $5.3 billion to $5.7 billion this year, while GE Vernova is expected to have an operating loss of $600 million to $200 million.
“Looking ahead, GE is positioned to drive growth, profit and cash, and our outlook reflects our confidence in our businesses,” Larry Culp, CEO of GE, said in a statement.
Aviation Gains, Renewables Slump
GE’s (GE) aerospace revenue rose 25% and orders jumped 26% on stronger demand from customers including Boeing (BA) and Airbus (OTCPK:EADSY). A rebound in air travel after the lifting of pandemic-related restrictions is driving the need for airplane parts and maintenance.
The company’s renewables unit that makes wind-power turbines saw revenue slump 19% from the prior year. The remainder of GE’s (GE) power business boosted revenue by 8% while orders rose 26%. The company is working to make the renewables business profitable by next year, partly by cutting costs.
Revenue rose 7% for the healthcare business, while orders were little changed. GE HealthCare (NASDAQ:GEHC) is scheduled to report earnings next week.