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General Electric (GE) Reaffirms Financial Outlook for FY22
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General Electric Company (GE - Free Report) provided the outlook for 2022. The company’s share price inched up 0.1% yesterday, ending the trading session at $91.33.
Inside the Headlines
General Electric believes that it is poised to benefit from improvement in business conditions and the plan of transforming into an aviation-focused firm. GE is anticipated to deliver significant value to its shareholders, employees and customers in the long run.
The company reiterated its financial guidance for 2022. It anticipates organic sales to increase in the high-single digits on a year-over-year basis. For the year, adjusted operating profit is expected to be $6-$7 billion, with margin expanding 150 bps from the previous year’s reported figure. Adjusted earnings per share are anticipated to be $2.80-$3.50, indicating an increase from $1.71 recorded in 2021. Free cash flow is expected to be $5.5-$6.5 billion.
For 2023, the company expects an adjusted operating profit of $10 billion and a free cash flow of more than $7 billion.
Per the company’s 2022 guidance, the Aviation business’ organic revenues will grow more than 20%. For 2022, organic revenues in both the Renewable Energy and Power businesses are anticipated to increase in the low-single digits. The same for the Healthcare business is expected to improve in the low to mid-single-digit range.
The company’s Aviation business is likely to gain from the recovery in the commercial aftermarket & military markets. Strength in the off-shore market and cost-management actions are likely to be favorable for the Renewable Energy business. Strength in the gas turbine market is likely to act as a catalyst for the Power business. Strong product orders and growth investments are likely to drive the performance of its Healthcare business.
Zacks Rank, Price Performance and Estimate Trend
General Electric, with a $100.4-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its portfolio-restructuring plans, expansion in the digital business, product innovation and efforts to deleverage the balance sheet in the quarters ahead.
However, supply-chain constraints and inflationary pressure are likely to impact GE’s performance in the near term.
Image Source: Zacks Investment Research
In the past three months, General Electric’s share price has decreased 1.9% compared with the industry’s decline of 12.2%.
In the past 30 days, the Zacks Consensus Estimate for the company’s 2022 earnings has decreased from $3.42 to $3.34, owing to two downward estimate revisions versus one upward. Also, the consensus estimate for its 2023 earnings has gone down from $5.05 to $4.98 due to three downward estimate revisions against none upward.
Stocks to Consider
Some better-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It delivered a four-quarter earnings surprise of 56.7%, on average.
Griffon’s earnings estimates increased 9% for fiscal 2022 (ending September 2022) in the past 30 days. GFF’s shares have lost 12.2% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) presently flaunts a Zacks Rank #1. Its earnings surprise in the last four quarters was 17.4%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 9.9% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 35.1%, on average.
Carlisle’s earnings estimates have increased 8.9% for 2022 in the past 30 days. CSL’s shares have lost 4.5% in the past three months.
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General Electric (GE) Reaffirms Financial Outlook for FY22
General Electric Company (GE - Free Report) provided the outlook for 2022. The company’s share price inched up 0.1% yesterday, ending the trading session at $91.33.
Inside the Headlines
General Electric believes that it is poised to benefit from improvement in business conditions and the plan of transforming into an aviation-focused firm. GE is anticipated to deliver significant value to its shareholders, employees and customers in the long run.
The company reiterated its financial guidance for 2022. It anticipates organic sales to increase in the high-single digits on a year-over-year basis. For the year, adjusted operating profit is expected to be $6-$7 billion, with margin expanding 150 bps from the previous year’s reported figure. Adjusted earnings per share are anticipated to be $2.80-$3.50, indicating an increase from $1.71 recorded in 2021. Free cash flow is expected to be $5.5-$6.5 billion.
For 2023, the company expects an adjusted operating profit of $10 billion and a free cash flow of more than $7 billion.
Per the company’s 2022 guidance, the Aviation business’ organic revenues will grow more than 20%. For 2022, organic revenues in both the Renewable Energy and Power businesses are anticipated to increase in the low-single digits. The same for the Healthcare business is expected to improve in the low to mid-single-digit range.
The company’s Aviation business is likely to gain from the recovery in the commercial aftermarket & military markets. Strength in the off-shore market and cost-management actions are likely to be favorable for the Renewable Energy business. Strength in the gas turbine market is likely to act as a catalyst for the Power business. Strong product orders and growth investments are likely to drive the performance of its Healthcare business.
Zacks Rank, Price Performance and Estimate Trend
General Electric, with a $100.4-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its portfolio-restructuring plans, expansion in the digital business, product innovation and efforts to deleverage the balance sheet in the quarters ahead.
However, supply-chain constraints and inflationary pressure are likely to impact GE’s performance in the near term.
Image Source: Zacks Investment Research
In the past three months, General Electric’s share price has decreased 1.9% compared with the industry’s decline of 12.2%.
In the past 30 days, the Zacks Consensus Estimate for the company’s 2022 earnings has decreased from $3.42 to $3.34, owing to two downward estimate revisions versus one upward. Also, the consensus estimate for its 2023 earnings has gone down from $5.05 to $4.98 due to three downward estimate revisions against none upward.
Stocks to Consider
Some better-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It delivered a four-quarter earnings surprise of 56.7%, on average.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Griffon’s earnings estimates increased 9% for fiscal 2022 (ending September 2022) in the past 30 days. GFF’s shares have lost 12.2% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) presently flaunts a Zacks Rank #1. Its earnings surprise in the last four quarters was 17.4%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 9.9% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 35.1%, on average.
Carlisle’s earnings estimates have increased 8.9% for 2022 in the past 30 days. CSL’s shares have lost 4.5% in the past three months.