General Electric Stock Moves Higher As GE Healthcare Makes Nasdaq Debut
“The successful spin-off of GE HealthCare marks a pivotal moment in our transformation into three independent companies focused on critical, growing sectors," said CEO Larry Culp.
“The successful spin-off of GE HealthCare marks a pivotal moment in our transformation into three independent companies focused on critical, growing sectors," said CEO Larry Culp.
GE HealthCare, recently spun-off from the iconic industrial group under the leadership of CEO Larry Culp, will make its trading debut on the Nasdaq Wednesday.
GE finalized plans to spin-off the healthcare division in late November, with shareholders receiving one share of GE HealthCare for every three shares of the main group they own under a distribution that took place after the close of trading last night. General Electric will retain a 19.9% stake in the newly-separated health care group in the form of common stock.
GE HealthCare shares will debut on the Nasdaq under the ticker symbol GEHC today. GE Vernova, the group's power and renewables division, will likely spun-out into the public markets through a tax-free deal in 2024, leaving GE Aerospace as the final piece of the group's breakup, trading on the NYSE under the traditional GE ticker.
“The successful spin-off of GE HealthCare marks a pivotal moment in our transformation into three independent companies focused on critical, growing sectors," said Culp. "I am tremendously proud of the GE and GE HealthCare teams for their work to prepare this great business to stand on its own as an industry-leading, investment grade company focused on Precision Care.”
“We’re on track and confident in our plans to unleash the potential of GE Aerospace and GE Vernova as separate companies in early 2024," he added. "These two global leaders are creating a smarter, more efficient future of flight and driving decarbonization to address the energy transition. With lean and innovation at our core, we could not be more excited about the future.”
General Electric shares were marked 2.03% higher in pre-market trading to indicate an opening bell price of $67.66 each.
GE reiterated its forecast for $4.5 billion in full-year free cash flows in late October, even as it lowered its profit forecast amid supply chain disruptions and cost pressures that trimmed the industrial group's bottom line.
GE said it sees adjusted earnings in the region of $2.40 to $2.80 per share for the full year, down from earlier forecasts of between $2.80 and $3.50 per share.
Adjusted non-GAAP earnings for the three months ending in September were pegged at 35 cents per share, a figure that was 38.6% lower than last year and 11 cents shy of the Street consensus forecast. Group revenues, General Electric said, rose 3.6% from last year to $19.1 billion, just ahead of analysts' estimates of an $18.62 billion tally.
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