Renewable energy and aerospace conglomerate GE (NYSE:GE) declined in trading after announcing its fourth-quarter results and a disappointing first-quarter guidance. The company now expects adjusted earnings in the first quarter to be between $0.60 and $0.65 per share, while revenues are projected to grow by a high-single-digit percentage. Analysts were expecting Q1 earnings of $0.72 per share.
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After the spin-off of its healthcare business, the company announced the spin-off of its energy businesses, including renewables, into a separate company by April this year. As a result, for FY24, the company issued separate guidance for its aerospace and energy businesses.
In FY24, GE expects its energy and renewables business, GE Vernova, to generate revenues between $34 billion and $35 billion with a mid-single-digit adjusted EBITDA margin. GE Aerospace’s adjusted revenue is projected to grow by low double digits, and its operating profit is expected to be in the range of $6 billion to $6.5 billion.
In the calendar fourth quarter, GE posted adjusted revenues of $18.5 billion, up by 13% year-over-year on an organic basis and above consensus estimates of $17.3 billion. The company reported adjusted earnings of $1.03 per share, surpassing analysts’ estimates of $0.90 per share. GE’s total orders grew 8% year-over-year on an organic basis to $21.7 billion.
Is GE Stock a Good Buy?
Analysts remain bullish about GE stock with a Strong Buy consensus rating based on 10 Buys and two Holds. Over the past year, GE stock has surged by more than 60%, and the average GE price target of $144.09 implies an upside potential of 9.8% at current levels.
