Where is Jack Welch when you need him? General Electric (GE) released its Q3 earnings yesterday, and while they were able to increase non-GAAP earnings per share by 18.75%, group revenues slipped by 1%, close to $1b shy of analysts’ expectations.
General Electric is blaming a “challenging operating environment” and “global supply chain disruptions” over the earnings hiccup. The company’s healthcare division was the hardest hit by supply chain issues, and disruptions are expected to last through at least the first half of 2022.
General Electric’s future outlook for the rest of the year is mixed, with CEO Larry Culp telling investors that “we’re raising our 2021 EPS expectations and narrowing our full-year free cash flow outlook.”
why it matters
GE's third quarter earnings report was a bit of a rorschach test, with different investors seeing different things. The stock finished yesterday's trading session 2% higher, while some analysts lowered their near-term expectations over the supply chain challenges ahead.