General Electric Co. (GE) – Get Report posted weaker-than-expected fourth quarter earnings Tuesday, but forecast solid industrial free cash flow growth for the coming year, sending its shares higher in pre-market trading.
General Electric said adjusted non-GAAP earnings for the three months ending in December were pegged at 8 cents per share, down 62% from the same period last year and one penny shy of the Street consensus forecast. Group revenues, General Electric said, fell 16.5% to $21.9 billion, coming in just ahead of analysts’ estimates of a $21.822 billion tally.
Looking into the 2021 financial year, GE said it sees adjusted earnings in the region of 15 cents to 25 cents per hare, as well as industrial free cash flows of between $2.5 billion and $4.5 billion.
“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.” said CEO Larry Culp.
“Over the past year our team proved resilient, and momentum is growing across our businesses. We are in leading positions to capture opportunities in the energy transition, precision health, and the future of flight,” he added. “As we continue our transformation, we remain focused on strengthening GE and delivering value for the long term.”
General Electric shares were marked 5.55% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $11.60 each, a move that would extend the stock’s six-month gain to around 73%..
GE said last month that it has pre-funded $2.5 billion in minimum pension payments for the next three years and repaid a $1.5 billion loan to GE Capital.
This article is auto-generated by Algorithm Source: www.thestreet.com