General Electric (NYSE:GE) gained 6% in early trading Tuesday following another beat and raise quarter.
Total adjusted revenues for the third quarter rose 18% organically to $16.5 billion, topping the consensus of $15.42 billion. Adjusted EPS was $0.82, well above the consensus of $0.56.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, "GE delivered another quarter of very strong results with double-digit growth in revenue, profit, and cash. At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services. At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve. With our two largest Renewable Energy businesses delivering and Power's continued strength, we remain highly confident in GE Vernova's spin-off next year."
GE also raised full-year 2023 guidance.
The company sees adjusted EPS for 2023 of $2.55-$2.65, versus the prior outlook of $2.10-$2.30 and the consensus of $2.36. The company sees organic revenue growth in the low teens, versus the prior outlook of low-double-digit. In addition, they see free cash flow of $4.7-$5.1 billion, versus the prior guidance of $4.1-$4.6 billion.
Culp concluded, "Based on our year-to-date results and continued momentum in the fourth quarter, GE is raising full-year 2023 guidance. We're well-positioned to launch GE Aerospace and GE Vernova as independent companies in the beginning of the second quarter. I'm more excited than ever about our path ahead."
Further, the company announced that it plans to spin off GE Vernova and launch GE Aerospace at the beginning of the second quarter of 2024, subject to final approval from the GE Board of Directors and other customary conditions. GE Vernova will be listed on the NYSE under the ticker symbol "GEV," and GE Aerospace will continue GE’s listing on the New York Stock Exchange under the ticker symbol “GE."