GE Reports Strong Q4 2022 Earnings with Adjusted EPS of $1.24, Exceeding Expectations and Demonstrating Robust Free Cash Flow

Intelligent Finance APP learned that General Electric (GE.US) released its Q4 and full-year 2022 earnings快报, showing that as of December 31, 2022, the adjusted total revenue for Q4 was $21 billion, an increase of 11%; the adjusted earnings per share were $1.24, better than the market forecast of $1.16. This earnings report includes the operating results of GE HealthCare Technologies, which was spun off on January 3, 2023. Its CEO expects high single-digit revenue growth in 2023, with strong free cash flow maintained. After the earnings announcement, General Electric's stock price turned from a decline to a rise during pre-market trading, slightly increasing by $0.21 or 0.26% at the time of writing.

Specifically, the total order value in the fourth quarter was $25.4 billion, a year-over-year increase of 15%; organic orders increased by 18% year-over-year. Q4 total revenue was $21.8 billion (GAAP), up 7%; adjusted total revenue was $21 billion, with organic growth of 11%. Q4 operating margin was 10.3% (GAAP), an increase of 2740 basis points year-over-year; adjusted operating margin was 10.3%, with organic growth of 290 basis points. Q4 earnings per share from continuing operations (GAAP) were $1.99, an increase of $5.23 year-over-year; adjusted earnings per share were $1.24, an increase of $0.42 year-over-year. Cash flow from operating activities (GAAP) was $4.6 billion, an increase of $2.2 billion year-over-year; free cash flow was $4.3 billion, an increase of $6 billion year-over-year.

For the full year, total orders amounted to $83 billion, a year-over-year increase of 4%, with organic orders up by 7%; total revenue reached $76.6 billion (GAAP), growing by 3%; adjusted total revenue was $73.6 billion, with organic growth of 6%; operating margin was 1.8% (GAAP), an increase of 680 basis points year over year; adjusted operating margin was 7.9%, with organic growth of 160 basis points; earnings per share from continuing operations were $0.53 (GAAP), an increase of $3.78 year over year; adjusted earnings per share were $2.62, an increase of $0.91 year over year; cash flow from operating activities was $5.9 billion (GAAP), an increase of $5 billion; free cash flow reached $4.8 billion, an increase of $2.1 billion.

GE Chairman and CEO H. Lawrence Culp, Jr. said, "2022 marks the beginning of a new era for GE. The company ended 2022 with solid revenue growth, improved profit margins, and $4.8 billion in free cash flow. In the fourth quarter, GE Aerospace achieved over 20% growth in orders and revenue, while Power delivered double-digit growth rates, both contributing to strong performance."

Looking ahead, Culp stated that GE will continue to focus on driving growth, improving profits, and cash flow. Revenue is expected to achieve high single-digit growth in 2023, with strong free cash flow maintained.

UBS analyst Chris Snyder recently stated that after General Electric (GE) divested its healthcare business, he lowered the target price for the company's stock from $98 to $87, while maintaining a "Buy" rating for the stock. The analyst believes that by 2023, all of GE's business lines will show positive changes, and the company's momentum will be stronger by 2024.