Updated at 7:18 AM EST

General Electric  (GE) – Get Free Report posted stronger-than-expected fourth-quarter earnings Tuesday but forecast softer near-term profit and muted cash flow, sending its shares lower in premarket trading.

Adjusted non-GAAP earnings for the three months ended in December were $1.08 a share, down 13% from the same period in 2022 but firmly ahead of the Wall Street consensus forecast of 91 cents a share. 

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Group adjusted revenue, General Electric said, fell 15% from the fourth quarter of 2022 to $18.5 billion, again topping analysts’ estimates of a $17.42 billion tally. Total revenue was pegged at $19.4 billion.

Looking into the current quarter, GE sees adjusted earnings in the region of 60 cents to 65 cents a share, around 7 cents shy of the LSEG forecast. 

Operating profit for GE Aerospace, its core division, were forecast in the range of $6 billion to $6.5 billion while overall GE free cash flow was forecast at just over $5 billion, a tally that would be flat with 2022 levels.

GE Vernova, the group’s power division, which is set to be spun off into a stand-alone business later this year, is forecast to generate revenue in the region of $34 billion to $35 billion, GE said.

GE CEO Culp: Q4 aerospace profit improvement ‘solid’

“In 2023, our teams delivered an excellent year, more than tripling earnings and generating almost 70% more free cash flow,” said CEO Larry Culp.  “At GE Aerospace, we drove solid revenue and operating profit improvement in the fourth quarter and double-digit revenue, profit, and cash growth for the year, reflecting ongoing strength in Commercial Engines and Services.”

“At GE Vernova, Renewable Energy and Power together delivered meaningfully better results, with double-digit revenue growth in the quarter and positive profit and free cash flow for the year,” he added. “We expect further revenue, profit, and free cash flow growth for both GE Aerospace and GE Vernova in 2024.”

General Electric shares were marked 5.6% lower in premarket trading immediately following the earnings release to indicate an opening bell price of $123.94 each, a move that would trim the stock’s six-month gain to around 12.4%.

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