|GE earnings results|
|Metric||Beat / Miss / Match||Reported value||Analyst forecast|
|Adapted EPS||Beat||$ 0.03||$ 0.02|
|Revenue (billions)||young lady||$ 17.1||$ 17.5|
|Renewable Energy Revenue (Billions)||game||$ 3.2||$ 3.2|
Source: Predictions based on analyst consensus from Visible alpha
The central theses
- Revenue from renewable energies was in line with analysts’ expectations and increased by around 2% compared to the previous year.
- As one of GE’s fastest growing areas, renewable energy revenues could be poised for further growth as the Biden administration prioritizes clean energy initiatives.
- Adjusted EPS exceeded analysts’ expectations, while sales were slightly below forecasts.
GE Financial Results: Analysis
General Electric Company (GE), known to investors as GE, reported Results for the first quarter of the 2021 financial year they were mixed. customized Earnings per share (EPS) were $ 0.03, 50% above analysts’ expectations. On the other hand, sales were slightly below analysts’ expectations. GE’s Revenue for the first quarter of fiscal 2021 was $ 17.1 billion versus analyst forecast of $ 17.5 billion.
GE’s key metric: Renewable Energy Sales
Investors may also have been watching GE’s key revenue metrics from the company’s renewable energy business, including the company’s wind, hydro, solar and other renewable energy offerings. GE reported sales of $ 3.2 billion for its renewable energy unit, in line with analysts’ expectations, up about 2% year-over-year. GE’s renewable energy business has grown much faster than the company’s total revenue in recent years, partly because the conglomerate has lost a lot of long-standing legacy equipment such as the lightbulb business.
Renewable energy revenues may also be ready for future growth as the Biden government has expressed an interest in Clean Energy Initiatives. The growth of GE’s renewable energy unit is critical to overall sales performance, especially as GE’s aviation division, which has been badly affected by the ongoing COVID-19 pandemic, continued to struggle in the first quarter of fiscal 2021 and posted a 28% drop in sales. compared to the previous year.
GE guidelines and stock performance
GE announced in its first quarter earnings release that it is forecasting low-single-digit growth in industrial sales in 2021, with adjusted EPS for the year between $ 0.15 and $ 0.25.
GE shares fell more than 3% after posting earnings in pre-market trading. Even so, the company’s stock rose sharply over the past year, leaving a year behind Total return of 117.8% compared to 47.6% for the S&P 500.
GE earnings call recap
In the first quarter earnings webcast presentation, GE executives stressed that the company was facing ongoing organic sales pressures. The strength in GE’s health unit could not offset the downward trend in the airline industry. Yet there are reasons for optimism, including in industry Free cash flow Performance of $ 1.7 billion YoY and significant improvement in Working capital flows in the same period. The company also does well in the liquidity space with $ 32 billion in cash, and GE reduced its debt by roughly $ 4 billion in the quarter. Overall, executives say solid first quarter results pushed GE to meet its 2021 commitments.
Next results report
GE’s next earnings report is expected to be released on July 16, 2021.