General Electric misses on earnings as renewable energy orders crashed in Q3
Yahoo Finance anchors discuss third-quarter earnings for GE as the company is looking to split into three unit.
BRAD SMITH: Let's also check in on some of the other earnings that have come out. GE, they reported earnings this morning, and some everyday household name companies, General Electric and 3M. Let's roll them together here starting on GE.
The company slashed its full-year earnings guidance range after a tough quarter for renewable-energy products here. And so for GE, we were taking a look at shares there a moment ago on screen, as my notes and my home computer just went down. So take a look at some of the actuals versus the estimates. It was--
BRIAN SOZZI: And it did. Guys, it did go down. His computer is, in fact. I had to look.
BRAD SMITH: Yeah.
BRIAN SOZZI: I had to look. Look, GE, not a good quarter. I'm surprised the stock isn't being hammered here off a guide down on the full-year like this. They're now at $2.40 to $2.80 a share for the full year. They were at $2.80 to $3.50. So not a good quarter.
And it really goes back to continued struggles in renewable energy. Orders in that segment crashed, not plunged, crashed, 43% margins down, over to 2,240 basis points year-over-year. Not a good quarter for that business.
And as you step back, here's a company still in transition. They're being split up into three companies. The first out of the chute will be the GE health care business. I believe they noted in the release, in early January.
BRAD SMITH: What Vernova?
BRIAN SOZZI: Vernova.
BRAD SMITH: Yeah. I mean, this is also a business that for, what, the past five, six years, it's been just a question of, OK, what division are they looking to offload now in order to remediate itself from some of its own issues managing some of the tougher parts of that business? And so there was this strategic-- not just the revolving door of who is going to be running the company for a while, and now the larger question of so which parts of the businesses are actually going to be most successful for them going forward?
Larry Culp actually saying that within GE Vernova, power is actually remaining on track to grow this year. They're taking actions to reset renewable energy. And then they're citing some external catalysts-- US legislation, particularly, and the energy crisis in Europe, increasing investment in new decarbonization technologies. And so that is what they're saying is going to help position GE Vernova for some of that longer term growth that they're tracking.
BRIAN SOZZI: It's just been a surprising earnings season.