General Electric Company ($GE) Earnings (Q1 FY22)

 General Electric Company ($GE) Earnings and Opinion:


General Electric is a company in the Industrials sector and operates in the Specialty Industrial Machinery industry. The company operates as a high-tech industrial company around the world. General Electric was founded in 1892 and is currently headquartered in Boston, Massachusetts. The company was first referenced on the stock market and available for trading in 1893.

General Electric EPS and Revenue (Q1 FY22):

  • EPS of $0.24 beating expectations of $0.19
  • Revenue of $17.04B beating expectations of $16.92B
General Electric Q1 Highlights:
  • EPS was up 85% (YOY)
  • Free cash flow of -$880M, up 74% (YOY)
  • Cash from operating activities of -$535M, up 80% (YOY)
Opinion:
General Electric is taking a hit today after reporting earnings before the market opened this morning. The company beat expectations in both EPS and revenue. However, weak sales guidance is a main component to blame for the lackluster earnings. On a GAAP basis, the company is really struggling and hasn't seen a profit. The profit margin is currently negative. This shows that this stock doesn't have a lot of sense of growth, or if it does have some growth, it is overtaken by the expenses that go along with it. When we digest the cash flow numbers that they reported, it seems as if it is becoming better at not burning cash. They seem closer to having a positive cash flow in both the free sense, as well as the operating cash flow side. General Electric is a stock that has been around for a while, and it has shown times of prosperity and times of trouble. Right now, it is showing some signs of trouble after a recent reverse stock split. The stock split was a 10:1 reverse split that carried the stock from $10 a share to around $100 a share. The stock has then slipped about $20 a share from then. The company is getting hit really hard with supply chain issues and inflationary pressures. That is the deal with every company right now though. The companies that are thriving right now, are the companies that are finding ways to adapt in this shaky economy. Personally, I have always followed General Electric, but I have never got into a position. It has never impressed me in valuations side of the company for me to partake in an ownership position. It still seems like it is not in the best position at the moment to be attractive for investors. However, with over 100 years of business, this company seems like a stronghold on the sector and industry. I don't ever see this company going away, so if you're looking for companies that will stick around forever with little risk, this could be a solid option for you.


*Information from General Electric, Yahoo Finance, Nasdaq
*Estimates from Zacks

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