General Electric raises guidance again after strong quarterly earnings

(Sharecast News) - General Electric (GE) raised its full-year profit forecast for the third time this year on Tuesday on the back of strong quarterly earnings. The engineering giant said the boost in earnings was mainly due to robust demand for jet engine parts and services and improved performance in its renewable energy operations.

For the third quarter, GE reported an adjusted profit of 82 cents per share, surpassing analysts' expectations for 56 cents per share, according to data reported by Reuters.

It now anticipated adjusted profit per share for 2023 to be $2.55 to $2.65, compared to its previous estimate of $2.10 to $2.30.

Additionally, GE revised its free cash flow projection for the year to be between $4.7bn and $5.1bn, from the earlier forecast of $4.1bn to $4.6bn in July.

GE's aerospace unit, responsible for manufacturing engines for Boeing and Airbus aircraft, saw double-digit growth in orders, revenue and profit compared to the previous year.

Additionally, margins expanded by 130 basis points from the same quarter last year.

Meanwhile, GE's grid and onshore wind businesses contributed to narrowing losses in its renewable energy unit, which had been grappling with weak demand and increased raw material and labour costs.

The company also took the wraps off its plans to spin off its aerospace and energy businesses, including renewables, into independent companies at the start of the second quarter.

It said the entities would be listed separately on the New York Stock Exchange under the ticker symbols GEV for its portfolio of energy businesses and GE for its aerospace unit.

At 0744 EDT (1244 BST), shares in General Electric were up 5.07% in premarket trading at $112.10.

Reporting by Josh White for Sharecast.com.