Shares of General Electric (NYSE:GE) rose 4.4% in premarket trading Tuesday following the company's announcement of its third-quarter earnings, which surpassed market expectations. The company reported a net income of $84 million, a significant turnaround from the loss of $313 million recorded in the same period last year. This aligns with the InvestingPro Tips that highlighted GE's strong earnings and expected net income growth for the year.
The adjusted earnings per share (EPS) reached 82 cents, exceeding predictions, while revenue surged by 20% to $17.3 billion, surpassing the FactSet consensus of $15.5 billion. This revenue growth is in line with the real-time metrics from InvestingPro, which reported a revenue growth of 23.24% LTM2023.Q2. The company also reported a 19% increase in total orders to $17.9 billion, attributing this growth to robust demand and solid execution strategies.
CEO Lawrence Culp Jr. credited the growth to several divisions within the company, including GE Aerospace, Commercial Engines, and Services, as well as profitable entities like GE Vernova, Grid, and Onshore Wind businesses. He also noted that Renewable Energy businesses are performing as expected. This is consistent with the InvestingPro Tips which recognize GE as a prominent player in the Industrial Conglomerates industry.
GE has announced plans for a spin-off of GE Vernova next year amidst Power’s continued strength. This strategic move comes alongside an upward adjustment to the company's full-year guidance, now expecting an EPS of $2.55 to $2.65. This aligns with the InvestingPro Tips that revealed that 6 analysts have revised their earnings upwards for the upcoming period.
This strong performance is reflected in the company's stock growth which has outpaced the broader market. Year-to-date, GE's stock has grown by 63%, significantly outperforming the S&P 500's gain of 9.7%. The InvestingPro Data supports this with a YTD Price Total Return Y2023.D297 of 63.56%. Furthermore, the InvestingPro Fair Value estimates the stock to be valued at 144.04 USD, indicating potential for further growth.
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