GE Shares Jump As Upbeat Industrial Cash-Flow Forecast Suggest Turnaround
General Electric Co soared 5% after reporting better-than-expected free cash flow for the fourth quarter, as it benefits from a recovery at its power and renewable energy units.
In a statement released Tuesday morning, the company said industrial free cash flow would be around $2.5 billion to $4.5 billion this year. Wall Street analysts had been expecting $2.57 billion. What this means is GE’s manufacturing divisions could be set to outperform.
“As 2020 progressed, we significantly improved GE’s profitability and cash performance despite a still-difficult macro environment. The fourth quarter marked a strong free cash flow finish to a challenging year, reflecting the results of better operations as well as strong and improving orders in Power and Renewable Energy,” Culp said in a statement.
The improved outlook is a sign that Culp’s turnaround plan could be working following a company’s collapse in recent years. The company generated $4.4 billion in industrial free cash flow in the fourth quarter, crushing expectations for $2.8 billion.
GE also boosted adjusted earnings by 15 cents to 25 cents per share this year.
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Read: GE 2020 fourth-quarter performance
Tue, 01/26/2021 – 07:40