General Electric (GE) raised its revenue and profit in the second quarter of 2023, prompting the aerospace and energy company to raise its outlook for the full year as it prepares to spin off its businesses.
Key things
- General Electric reported earnings per share jumped 89%, while profit rose 37% on double-digit growth in aircraft engine orders.
- The company raised its full-year earnings outlook to $2.10 to $2.30 per share, from $1.70 to $2.
- CEO Larry Culp said GE remains on track to spin off its aerospace and energy businesses in 2024.
On the strength of its aerospace business, GE has grown its profit per share by 89% to $0.68 in Q2 2023, up from $0.36 in the same period last year. Revenues rose 19% year-over-year to $15.9 billion, while profit jumped 37% to $1.4 billion over the same period. GE shares traded more than 4% higher in early trading on Tuesday following the news.
Following its second consecutive quarter that beat analysts’ expectations, General Electric picked up his year-round management, forecast earnings of $2.10 to $2.30, up from a previous call of $1.70 to $2.00. It also expects its sales to grow in the low double digits, up from the high single digit range in its previous guidance.
GE’s business is recovering after its orders shrank due to travel restrictions related to Covid-19, as the Boeing and Airbus supplier lost business opportunities as a reason for travel. But as travel has reopened, his stock was on a tear. Shares are up more than 66% year-to-date, trading at more than $110 since the start of the year at around $66.
Aviation orders rise as the company prepares to divest its energy business
General Electric The aerospace industry led the way, delivering double-digit year-over-year growth in orders, revenue and operating profit. The aero engine maker increased its orders by 37% in the second quarter of 2023, lifting its profits by 29% to $1.5 billion and revenue by 28% to $7.9 billion from the second quarter of 2022.
GE’s traditional energy division Vernova reported second-quarter 2023 earnings to $377 million, an 18% year-over-year increase, while its revenue fell 1% to $4.1 billion. GE’s renewable energy division Vernova narrowed its losses from last year to $359 million from $419 million for the second quarter of 2022, while its revenue rose 24% to $3.9 billion.
“We are increasingly operating as GE Aerospace and GE Vernova as we prepare to launch these two independent companies sometime in early 2024,” CEO Larry Culp said in a statement.