General Electric (NYSE:GE) reported Q2 EPS of $0.78, $0.40 better than the analyst estimate of $0.38. Revenue for the quarter came in at $17.9 billion versus the consensus estimate of $17.38 billion.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, “The GE team delivered a strong second quarter with growth in orders, revenue, and profit, as well as positive free cash flow. Aerospace was a key driver of our performance this quarter as the industry recovery builds momentum. In higher-margin services, GE delivered double-digit revenue growth, with Aerospace up 47 percent compared to last year.” Culp added, "We are improving delivery, price, and cost performance via lean and decentralization. Notwithstanding this progress, much is still uncertain about the external pressures companies are facing at this moment. We continue to trend toward the low end of our 2022 outlook on all metrics except cash, which is lower due to timing of working capital and Renewable Energy-related orders." Culp concluded, "We're building meaningfully stronger businesses as we focus on serving our customers and investing through these constraints. We are on track and confident in our plans to form three independent companies positioned to create long-term value."
GUIDANCE:
GE continues to trend toward the low end of its 2022 outlook on all metrics except free cash flow*. Working capital will be pressured as GE protects customers from the impact of supply chain challenges, as well as Renewable Energy-related orders, which together are likely to push out approximately $1 billion of free cash flow* into the future.