General Electric (NYSE:GE) is raising the low end of its 2023 profit forecast based on its first quarter performance and market demand, the company said when handing down its results for the quarter ended March 31, 2023.
The company said it now expects to report adjusted earnings per share (EPS) of $1.70 to $2 and free cash flow of $3.6 billion to $4.2 billion, compared to its previous expectation of adjusted EPS of $1.60 to $2 and free cash flow of $3.4 billion to $4.2 billion.
GE added it continues to expect high-single-digit revenue growth for 2023.
The multinational conglomorate posted an earnings beat on both the top and bottom lines when it reported its results for the quarter before the opening bell on Tuesday, boosted by growth in its aerospace segment driven by demand for engines as the aviation industry recovers post-pandemic.
Adjusted EPS of $0.27 topped the Street’s expectation of $0.14. Total revenue came in at $14.5 billion, above the expected $13.46 billion but down from $17 billion in the year-ago quarter.
GE Aerospace reported a 25% surge in revenues, exceeding expectations of 22.7% growth, to $6.98 billion. Orders grew 14% year-over-year to $8.21 billion.
The company’s CEO H Lawrence Culp Jr noted that the company had achieved positive free cash flow in the first quarter for the first time in nearly a decade.
Free cash flow came in at $0.1 billion, a $1.3 billion improvement from negative free cash flow of $1.17 billion in the year-ago quarter.
"The GE team is off to an encouraging start in 2023, with our results reflecting robust market demand and our progress operating leaner and more focused businesses,” Culp said.
GE’s shares moved lower following its results, down 1% at US$99.11 shortly after the opening bell on Tuesday.
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