GE Reports Better-Than-Expected Earnings, Anticipates Headwinds

Company says it’s optimistic, but is working through Inflation and ‘other evolving pressures.’

Michael Wildes

Tuesday, April 26, 2022 at 02:02 PM ET

Verified

[File photo: Shutterstock]

Key Takeaways:

General Electric reported better-than-expected Q1 sales but adjusted its full-year outlook to the lower end due to significant headwinds, including inflation, supply chain disruptions, and the conflict in Ukraine, which led to an 11% drop in its share price.
The Aviation segment was a strong performer, with a 12% increase in revenue and 31% growth in orders, driven by a rebound in commercial travel and higher commercial engine deliveries.
Despite current challenges, GE remains committed to its plan of launching three independent companies and is advancing future innovations, such as a hybrid-electric flight test program in partnership with Boeing and NASA.

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In its first-quarter earnings results call Tuesday, General Electric (NYSE: GE) reported better-than-expected sales, but CEO Larry Culp warned of headwinds that could tamper with earlier full-year predictions.

“We’re holding the outlook range we shared in January, but as we continue to work through inflation and other evolving pressures, we’re currently trending toward the low end of the range,” Culp said in a statement. “Importantly, we remain on track to launch three independent, investment-grade companies with leading positions in growing, critical sectors, well-positioned to create long-term value.”