This post was originally published on this site
Investing.com – General Electric (NYSE:GE) stock could extend Friday’s losses that followed a cautious outlook from the company.
The stock traded 1.2% lower in premarket Tuesday after shedding nearly 6% Friday. Markets were shut Monday on account of George Washington’s Birthday.
“While we are seeing progress on our strategic priorities, we continue to see supply chain pressure across most of our businesses as material and labor availability and inflation are affecting healthcare, renewable energy and aviation. Although varied by business, we expect these challenges to persist at least through the first half of the year,” GE said in an investor release it sent to the Securities and Exchange Commission.
For the current year, GE has forecast organic revenue to grow by around 9% with adjusted profit per share seen between $2.8 and $3.5. The company said while its guidance factored in the pressures, “The magnitude of these challenges likely present pressure to overall growth, profit and free cash flow through the first quarter and the first half, beyond typically expected seasonality.”
GE is currently going through a big restructuring that will eventually split its business into three. The company plans to spin off its healthcare business in early 2023, and its renewable energy and power company in early 2024, leaving the parent to focus overwhelmingly on aviation. GE plans to keep around 20% in the healthcare business.
