General Electric (NYSE:GE) has reported stronger-than-expected second-quarter earnings, partly due to increased demand at its GE Aerospace division and record Renewable Energy orders as it prepares to spin off the two businesses.
It has also raised its full-year guidance, sending its shares more than 10% higher in early Tuesday trading.
The company reported a 59% rise in total orders to $22 billion for the three months to June 30, 2023, supporting 18% growth in revenues to $16,7 billion.
Adjusted earnings per share (EPS) jumped 89% to $0.68, above the $0.46 consensus estimate of analysts, according to Zacks Investment Research.
"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,” GE Chairman and CEO and GE Aerospace Lawrence Culp said in a statement.
“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.”
The company now expects full-year 2023 revenue growth in the low double digits, with EPS of between $2.10 and $2.30.
GE’s shares were up 10.3% at $115.82 shortly after the market opened.
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