General Electric (NYSE:GE) gained nearly 5% in pre-open trading Tuesday after beating consensus views for the second quarter and raising guidance for the full year.
GE reported that adjusted revenue in the quarter rose 19% organically to $15.9 billion, topping the consensus of $14.76 billion. Total orders rose 59% to $22B.
Adjusted EPS in the quarter was $0.68, up $0.32 from last year, and easily beating the consensus of $0.46.
"GE's second-quarter performance was strong, building on our first-quarter momentum and marking a solid first half of the year,” CEO H. Lawrence Culp, Jr. commented. “Orders and revenue grew double digits, led by robust services growth across our portfolio, increased demand at GE Aerospace and record Renewable Energy orders. Today, we are raising our full-year guidance as market strength and the lean transformation within our more focused businesses drive significant profit and cash improvement across GE.”
Looking ahead to the full year, GE now sees adjusted EPS of $2.10-$2.30, up from prior guidance of $1.70-$2.00 and the consensus of $2.06.They now see organic revenue growth in the low-double-digit (LDD) range, up from the high-single-digit (HSD) range. Further, they see free cash flow (FCF) of $4.1 to $4.6B, up from $3.6 to $4.2B.
“GE Aerospace is growing rapidly, executing on the ramp for customers and building services strength, while GE Vernova advances toward its spin-off as Renewable Energy improves and Power continues to deliver,” Culp added. “Each business has its own critical mission and focus. We’re increasingly operating as GE Aerospace and GE Vernova as we prepare to launch these two independent companies sometime in early 2024.”