General Electric on Tuesday forecast higher profit and free cash flow this year after reporting stronger-than-expected earnings in the quarter through December.
But the company’s revenue in the latest quarter came below Wall Street’s estimates, hurt by persistent global supply chain disruptions and uncertainty over whether U.S. production tax credits for onshore wind investments will be extended over the long term.
GE’s shares were down 1.8% at $95.17 in premarket trading.
The 2022 estimates are based on the company’s new reporting format, which it moved to after selling its jet-leasing business and folding its capital business into its corporate operations.
The Boston-based industrial conglomerate expects adjusted profit in the range of $2.80 per share to $3.50 per share in 2022, compared with $1.71 per share last year.
Full-year free cash flow is estimated at $5.5 billion-$6.5 billion, up from $2.6 billion in 2021.
In its new format, the group will no longer report GE Capital, its financial services division, as a standalone business segment.
The company generated $20.3 billion in revenue in the fourth quarter, down 3% from a year ago and below the $21.5 billion estimated by analysts surveyed by Refinitiv.
Under the old format, GE’s adjusted earnings for the quarter came in at 92 cents per share, beating the consensus estimate of 85 cents a share.
It generated $3.8 billion in free cash flow from industrial operations during the quarter, down about $500 million from a year earlier.