The shares of General Electric Today, shares of (NYSE) fell more than 5% after Q1 results were reported by the company.

General Electric reported Q1EPS of $0.24. That’s $0.05 higher than the analysts estimate of $0.19. The quarter’s revenue was $17 billion, compared to the $16.91 million consensus estimate.

GE stock fell most because of comments that the company expects full-year earnings to be lower than its forecasted range due to supply chain problems and higher freight costs.

Coronavirus caused supply disruptions across the globe and drove up costs. This made it more difficult for manufacturers and companies to make enough products to meet demand. Furthermore, the latest Covid-19 waves in some countries and Russia’s invasion of Ukraine have additionally worsened the already bad circumstances.

Larry Culp (CEO of General Electric) stated, “We are still holding the outlook range that we shared in January but we continue to deal with inflation and other evolving forces, so we’re currently trending towards the low end.”

The conglomerate had previously forecast that full-year adjusted profits would range from $2.80 to $3.50 per share. It also estimated that its profit margin will rise by 150 basis points and generate free cash flow of $5.5 billion to $6.5 million.

Wolfe Research analysts viewed GE’s update to its 2022 outlook as “disappointing, but not surprising.”

Analysts wrote that the greatest swings in guidance are likely to be due to the severity of the losses from Renewables and the rate of recovery for Healthcare margins.

Goldman Sachs (NYSE:) analyst Joe Ritchie said that results provided “something for both the bulls and the bears to point to.”

“We expect the 2022 to 2023 EBIT/FCF bridges to be the focus of the call and believe the shares will likely underperform on this result,” the analyst said in a note.

By Senad Karaahmetovic