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Earnings outcomes: GE inventory falls as gross sales decline whereas FCF strengthens, full-year earnings outlook got here in beneath steerage

Shares of General Electric Co. fell early Tuesday after the industrial conglomerate reported fourth-quarter free cash flow that beat expectations, but earnings fell shyly and offered a dismal full-year earnings outlook.

This was the first quarterly result since GE's blockbuster announcement in November that it planned to split into three separate, publicly traded companies and move from three-column reporting to single-column reporting of financial statements.

In single-column reporting, adjusted earnings came in below Wall Street expectations.

GE stock
GE,
+0.63%
Shed 2.5% in premarket trading after rising 0.6% on Monday to end a four-day losing streak.

The company posted a net loss of $3.90 billion, or $3.55 per share, on net income of $2.44 billion, or $2.20 per share, for the same period a year ago.

Excluding one-time items, adjusted earnings per share rose to 92 cents from 58 cents. Under the "new single-column reporting format," GE said adjusted earnings per share rose to 82 cents from 49 cents.

The FactSet EPS consensus was 85 cents.

Do not miss: GE Earnings: Wall Street analysts lowered the beat bear, but investor expectations are now 'slightly elevated'.

Revenue fell 3.5% to $20.30 billion, just below the FactSet consensus of $21.31 billion, with three of the four divisions reporting revenue declines.

Closely watched industry free cash flow for the quarter fell to $3.71 billion from $4.39 billion, but beat the FactSet consensus of $3.06 billion.

Among GE's business segments:

Aviation revenue increased 4.0% to $6.08 billion.

Power sales fell 13% to $4.66 billion.

Healthcare revenue fell 4.1% to $4.63 billion.

Renewable energy fell 5.6% to $4.19 billion.

Looking ahead, GE expects 2022 adjusted EPS to be in the range of $2.80 to $3.50, below the current FactSet consensus of $4.00, and free cash flow for the industry of $5.5 billion to $6.5 billion, in line with expectations of $5.16 billion.

The stock is down 8.0% in the three months ended Monday, according to the SPDR Industrial Select Sector Exchange Traded Fund
XLI,
+0.57%
is down 3.1% and the S&P 500 Index
SPX,
+0.28%
fell by 3.4%.

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