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Total orders: reached $79. 2 billion, a biological increase of 25%.
Revenue: GAAP revenues hit $68.0B, a 17% rise, with adjusted revenues at $64.6B, also up 17% organically.
Profit Margin: GAAP profit margin soared to 15.0%, a significant 1,640 bps improvement; adjusted profit margin increased by 310 bps organically to 8.8%.
Current EPS: GAAP EPS of $7. 98, a notable increase from a prior loss, with adjusted EPS of $2. 81, an increase of $2. 04.
Free cash flow: GAAP money from operating activities was $5. 6 billion, up 38%, with loose money up to $5. 2 billion, up 68%.
Warning! GuruFocus detected nine precautionary symptoms with GE.
On January 23, 2024, General Electric Co (NYSE:GE) released its 8-K filing, detailing a robust financial performance for the fourth quarter and full year of 2023. GE, a global industrial leader with a legacy dating back to Thomas Edison, is poised for a transformative year with the planned spin-offs of GE Aerospace and GE Vernova in early April. Under the leadership of CEO Larry Culp, the company has focused on lean principles and innovation, particularly in its high-margin service revenue from a vast industrial equipment base.
GE’s effects in 2023 reflect a developing business, with overall orders up 25% organically to $79. 2 billion and overall currencies up 17% to $68. 0 billion. The company’s profit margin increased significantly, with a GAAP profit margin jumping 1,640 core issues to 15. 0%, and adjusted profit margin expanding organically by 310 foundation issues to 8. 8%. Ongoing EPS on a GAAP basis increased from a loss to $7. 98, while adjusted EPS increased from $2. 04 to $2. 81. Cash from operating activities also saw a healthy 38% increase to $5. 6 billion, and loose cash rose an impressive 68% to $5. 2 billion.
GE’s financial achievements in 2023 are particularly important as they set the stage for the upcoming spin-offs of GE Aerospace and GE Vernova. These results demonstrate the company’s ability to generate substantial profits and cash flow, which are crucial for funding innovation and growth in the competitive industrial products industry.
The income statement reveals a 15% increase in total revenues for the fourth quarter, with a notable 90 basis point improvement in profit margin. The balance sheet remains robust, with GE ending the year with strong cash positions, even after significant capital returns to shareholders through share repurchases and preferred stock redemptions.
GE’s cash flow highlights the company’s operational efficiency, with a 68% increase in loose cash flow, reflecting the company’s ability to successfully turn profits into money. This move is vital for GE because it provides mandatory liquidity for ongoing operations and strategic investments.
GE Aerospace delivered exceptional functionality with double-digit expansion in orders, currencies input, operating profit and money, driven by advertising momentum and strong services. GE Vernova, which includes the renewable strength and strength sectors, also saw significant improvement, with double-digit expansion and positive profit and loose money for the year.
GE’s money charts highlight the company’s operating segments: aerospace and energy appear to have strong cash inflow and profit growth, while renewable energy has made strides in reducing losses and margins.
In 2023, our groups had a wonderful year, tripling profits and generating about 70% more loose money,” said Larry Culp, GE president and CEO. He also expressed optimism for 2024, expecting further expansion in revenue, earnings and money for GE Aerospace and GE Vernova.
Looking ahead, GE provided guidance for 2024, forecasting single-digit earnings expansion, adjusted earnings per share of $0. 60 to $0. 65 and loose money in line with the net source of earnings expansion for the first quarter. For the full year, GE Vernova expects diversity earnings of $34 billion to $35 billion, with a diversity-adjusted EBITDA margin of $5 billion to $10 billion and loose money on diversity of $0. 7 billion to $1. 1 billion. GE Aerospace expects weak profit expansion of double digits or higher, operating profit in the range of $6 billion to $6. 5 billion and cash losses in excess of $5 billion.
Analysis of the company’s functionality suggests that GE is effectively leading its turnaround strategy, focusing on operating power and expansion in its key segments. The upcoming spin-offs are expected to generate more value and allow the company to capitalize on its strengths in its respective markets.
For more detailed data and research on General Electric Co. ‘s monetary performance, visit GuruFocus. com.
See General Electric Co’s full 8-K earnings (here) for more details.
This article was first published on GuruFocus.