- General Electric Co (NYSE:GE) reported a fourth-quarter FY21 revenue decline of 3% year-over-year to $20.30 billion, missing the consensus of $21.48 billion.
- Total orders declined by 5% Y/Y to $22.1 billion and decreased by 4% on an organic basis.
- Adjusted EPS was $0.82, up by 67% Y/Y, while GAAP Continuing EPS loss was $(3.24).
- Total company adjusted profit margin expanded by 200 bps to 8.1%. Free cash flow stood at $3.71 billion, down 16% Y/Y.
- Adjusted GE industrial profit margin expanded by 280 bps to 9% for the quarter.
- Aviation revenue increased by 4% Y/Y to $6.08 billion, orders increased by 22% Y/Y to $7.71 billion, and segment profit margin expanded 1,040 bps to 20%.
- Healthcare revenue declined 4% Y/Y to $4.63 billion, orders increased by 6% Y/Y to $5.3 billion, and segment profit margin contracted by 320 bps to 16.5%.
- Renewable Energy revenue declined by 6% Y/Y to $4.19 billion, orders fell by 23% Y/Y to $4.85 billion, and segment profit margin contracted by 540 bps to -7.4%.
- Power revenue declined by 13% Y/Y to $4.66 billion, orders fell 23% Y/Y to $4.31 billion, and segment profit margin expanded by 90 bps to 6.6%.
- GE's industrial cash from operating activities for FY21 totaled $1.53 billion.
- GE progress on its transformation: The company solidified its financial position by completing the GECAS transaction and a $25 billion debt tender in the quarter, reducing gross debt by ~$87 billion over three years.
- GE has $35 billion of debt, ~$16 billion of cash, and $13 billion in the AerCap Holdings NV (NYSE:AER) equity stake and note and Baker Hughes Co (NASDAQ:BKR) equity stake.
- FY22 Outlook: GE expects organic revenues to grow in the high-single-digit range and the adjusted organic profit margin to expand by 150+ basis points.
- It expects Adjusted EPS of $2.80 - $3.50; and Free cash flow of $5.5 billion - $6.5 billion.
- Additionally, GE expects to return to revenue growth in 2022, anticipates Aviation revenue to increase more than 20%, and low- to mid-single-digit revenue growth in Healthcare.
- Price Action: GE shares traded lower by 2.72% at $94.27 during the premarket session on Tuesday.
