GE stock sprouts after loss of profit, but large free cash flow beat and upbeat outlook

Shares of General Electric Co. GE
Prepaid trading rose 4.8% on Tuesday, with the diversified industrial group expecting fourth-quarter profit that missed expectations but revenue and free cash flow beat forecasts. Net income increased to $ 2.44 billion, or $ 2.27 per share, to $ 538 million, or 6 cents per share, in the year-earlier period. Excluding non-recurring items, adjusted earnings per share fell from 20 cents to 8 cents, to miss the FactSet consensus of 9 cents. Revenue fell 16% to $ 21.93 billion, up from FactSet’s consensus of $ 21.75 billion, as all four of its business segments had expectations. Industrial free cash flow was $ 4.4 billion, compared to previous guidance of at least $ 2.5 billion. “The fourth quarter ended a strong free cash flow for a challenging year, reflecting better operating results as well as stronger and stronger and energy-improving orders,” said CEO Larry Kallp. For 2021, GE expects to adjust EPS of 15 cents to 25 cents, down from the current FactSet consensus of 37 cents, and FCF from $ 4.5 billion to $ 4.5 billion, while BofA Securities analyst Andrew Obin from $ 1.5 billion. The FCF guidance was estimated at $ 3.5 billion. The stock has gained 48.9% in the last three months, while the S&P 500 SPX,
+ 0.36%
Has increased by 13.4%.


Leave a Reply

Your email address will not be published.