By Dhirendra Tripathi
Investing.com – General Electric stock (NYSE:GE) fell 2.6% in Tuesday’s premarket trade as fourth-quarter revenue fell short of estimates, let down by its power and renewable energy business.
Total quarterly revenue of over $20 billion was 3% lower year-on-year. Revenue in the power division fell 13% as the company shipped fewer units of its equipment due to reduced demand from gas power stations. Demand for equipment from coal-fired units also continued to suffer as more companies exited that segment. Overall orders were down 23% and revenue was down 13%
In the renewable energy business, clients delayed investments due to uncertainty over the future of tax credits, leading to a 23% drop in orders. Revenue fell 6%.
Supply shortages led to a 4% decline in revenue from healthcare. Orders were up though by 6%.
The aviation business, the company's largest, shone as expanded airline scheduled bolstered demand for its engines and related services. Orders were up 22% while revenue rose 4%.
The company is now projecting its 2022 revenue to grow by just under 10%. It sees adjusted EPS for the year at $3.15 at the midpoint of its guidance range.
Profit per share for the December quarter was 92 cents, higher than estimated.
The 2022 estimates are based on the company's new reporting format, which it moved to after selling off its jet-leasing business and folding the remainder of its capital business into corporate operations.
GE plans to spin off its healthcare business in early 2023 and its renewable energy and power company in early 2024, leaving the remaining company focused on aviation. It plans to keep around 20% in the healthcare business.