General Electric conglomerate is preparing for a report: expectations for 2022

This week, the diversified conglomerate General Electric Co. (GE) plans to report the results of the quarter, as well as to present a forecast for 2022. Often the company offers very bold estimates at the beginning of the year but later reduces them. General Electric is forecast to post earnings of $0.83 per share in the fourth quarter, which means an annual growth of 29.69%. 

General Electric’s problem is that economic uncertainty affects all segments of its business. For example, in 2022. the problem with supply chains can put severe pressure on the healthcare segment. Nevertheless, as General Electric’s management suggests, in 2022, the feature can count on revenue growth at least at a low single-digit rate. In addition, the past year has not been the most successful for General Electric’s defense business. Initially, management expected an increase in military revenues for the whole year. Still, the latest forecasts in the third quarter foresee a decline in revenues due to supply chain constraints.

Probably, the situation will not change for the better in 2022. The renewable energy segment of General Electric predicts cash outflow is the effect of disrupting supply chains and extending tax incentives for offshore wind energy production. 

For this reason, customers no longer need to reschedule orders to qualify for this benefit. At the same time, General Electric’s gas business (turbines for the oil and gas industry) can demonstrate growth in 2021 and 2022.