General Electric 's (NYSE:GE) shares saw a significant uptick following the company's Q3 results which exceeded expectations, largely due to robust demand in commercial engines and services. The surge in share price positioned GE as the S&P 500's second-best performer in premarket trading today.
The company reported a year-on-year increase in net income from $88 million to $258 million. Adjusted earnings per share reached 82 cents, surpassing the FactSet consensus. Revenue grew by 19.9% to reach $17.35 billion, with significant contributions from GE Aerospace and GE Vernova which reported revenues of $8.41 billion and $8.13 billion respectively. According to InvestingPro data, GE's revenue growth for the last twelve months is 23.24%, indicating a continued acceleration in its revenue growth.
Total orders for the quarter increased by 19% to $17.9 billion, and free cash flow more than doubled to $1.67 billion, a figure that includes revenue from the recently spun-off GE Healthcare Technologies Inc.
CEO Lawrence Culp Jr. emphasized the rapid growth in Aerospace and improvements in Vernova's performance as key drivers of the company's success this quarter. He also pointed out the robustness of the Commercial Engines and Services, Onshore Wind businesses, and Power's continued strength. As a result of these positive developments, the company has increased its full-year guidance from $2.10-$2.30 to $2.55-$2.65 per share.
In future developments, GE Vernova is set for a NYSE spinoff under the ticker "GEV". Meanwhile, GE’s stock has seen substantial growth this year, with gains amounting to 63% year-to-date. This aligns with InvestingPro's data, which shows a year-to-date price total return of 63.56%.
As per InvestingPro Tips, GE has a perfect Piotroski Score of 9, indicating a strong financial health and profitability. The company's strong earnings should allow management to continue dividend payments, a tradition it has maintained for 53 consecutive years. This is supported by the InvestingPro data that shows a dividend yield of 0.3%.
GE is a prominent player in the Industrial Conglomerates industry with a market cap of 122.44B USD, as per InvestingPro data. The company's net income is expected to grow this year, and it operates with a moderate level of debt. These factors, along with the company's performance, make it a worthy consideration for investors. For more insightful tips and real-time metrics, check out InvestingPro. There are 13 additional tips available for GE, all designed to aid investors in making informed decisions.
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