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Shares of General Electric Co. GE,
surged 4.8% in pre-market trading on Tuesday, after the diversified industrial conglomerate reported fourth-quarter profit that fell short of expectations, but revenue and free cash flow that exceeded expectations. Net income rose to $ 2.44 billion, or $ 2.27 per share, from $ 538 million, or 6 cents per share, in the same period a year earlier. Excluding non-recurring items, adjusted earnings per share fell to 8 cents from 20 cents, missing the FactSet consensus of 9 cents. Revenue fell 16% to $ 21.93 billion, above the FactSet consensus of $ 21.75 billion as all four business segments beat expectations. Industrial free cash flow was $ 4.4 billion, against a previous forecast of at least $ 2.5 billion. “The fourth quarter marked the end of a strong free cash flow for a difficult year, reflecting the results of better operations as well as strong and improving orders in the energy and renewables sectors,” said General Manager Larry Culp. For 2021, GE expects adjusted EPS of 15 cents to 25 cents, below the current FactSet consensus of 37 cents, and FCF of $ 2.5 billion to $ 4.5 billion, while the BofA Securities analyst Andrew Obin was forecasting an FCF focus of around $ 1.5 billion to $ 3.5 billion. The stock has advanced 48.9% in the past three months, while the S&P 500 SPX,
gained 13.4%.
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