GE stock dives into the red after investor update on supply chain pressure

32899 ge stock dives into the red after investor update on supply chain pressure

Shares of General Electric Co. GE, -5.86% took a dive in morning trading Friday, swinging from a slight gain to a 4.3% loss, after the industrial conglomerate disclosed that supply chain challenges will put pressure on growth, profit and free cash flow through the first half of 2022, more so than typical seasonality. “In light of recent commentary from other companies, a number of investors and analysts have been asking us for additional color about what we are seeing so far in the first quarter,” the company said in investor newsletter. “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.” The company said the supply chain pressures are included in its previously provided full-year guidance for earnings per share of $2.80 to $3.50 and for free cash flow of $5.5 billion to $6.5 billion. The stock has shed 6.4% over the past three months, while the S&P 500 SPX, -0.72% has lost 7.2%.

Source: Marketwatch

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