Investing.com – GE stock (NYSE:GE) rose 1.4% in Tuesday’s premarket as the company raised its EPS forecast for the current year after managing to grow its margins in a challenging quarter.
The company boosted its profit forecast for the year to $1.95 at the midpoint of the guidance range from $1.60 previously.
GE expects revenue growth, margin expansion, and higher free cash flow in 2022, although it narrowed its free cash flow outlook for the ongoing quarter.
The company overcame supply shortages and higher costs of raw materials to expand its third-quarter adjusted industrial profit margin by 270 basis points to 7.5%. One basis point is one-hundredth of a percent.
New orders and faster execution in the aviation business rescued the company’s performance in the September quarter. But for the 10% growth in the aviation business, the 1% fall in the company’s revenue would have been steeper.
The company booked orders worth $22.1 billion during the quarter, 22% higher than last time. Orders came in all four key segments but with more than 60% share, aviation and renewables accounted for the bulk of it. Healthcare was next while power was a laggard with new orders rising 8% from last year.
The company warned of supply chain disruptions and onshore wind market pressure because of uncertainty over the extension of production tax credits in President Joe Biden's infrastructure bill.
Total revenue was $18.43 billion and fell short of analysts’ expectations. Adjusted profit per share was 57 cents and ahead of estimates.