General Electric (NYSE:GE) finished -10.3% in Tuesday’s trading, fell to the lowest close as of November 2020 in Biggest sell-off in two yearsafter saying it is trending towards the low end of the 2022 financial forecast because it grappling with supply chain difficulties and raw material costs increase.
“It’s been as challenging a macro backdrop as I’ve seen it,” CEO Larry Culp told Bloomberg. revenue growth will be about six percentage points higher if it can get all its orders out the door.
GE (GE) posted Q1 profit that beat Wall Street estimates, but it will need strong H2 performance to hit full-year guidance in adjusted EPS of $2.80 – $3.50, the company said. ty said trend towards lowerand $5.5 billion-$6.5 billion from free cash flow.
Free cash flow was less than forecast at negative $880 million, although Q1 is typically GE (GE’s) weakest month given the seasonality of its businesses.
Bank of America’s Andrew Obin maintains a Buy rating and $132 price target on GE (GE) but says supply chain drag on the outcome is more serious than expected.
Obin continued to see FCF guidance for 2022, “but acknowledges that this will require some supply chain improvements.”
Barclays analyst Julian Mitchell, who rates the stock at Overweight, noted that the lack of buybacks in Q1 was perhaps a surprise given the weak share price and recent board mandate. .
Stephen Tusa, JP Morgan’s longtime head of operations, said the quarter was “a failure, plain and simple, on most counts.”
3M stock also fell today after saying Supply chain problems will continue for the foreseeable future.