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- EPS: 17 cents per share against 22 cents per share expected, according to badysts surveyed by Refinitiv.
- Revenue: $ 33.28 billion versus $ 32.6 billion expected, according to badysts surveyed by Refinitiv.
GE action rose 9% in pre-market trading, up from $ 9.10 at close on Wednesday.
"Our strategy is clear: to reduce our balance sheet and strengthen our business, starting with Power," GE President and CEO Larry Culp said in a statement. "We still have work to do, but I am encouraged by the changes we are making to strengthen GE and create value."
GE's fourth quarter adjusted earnings were 17 cents a share, down 60% from the same period last year. GE has not provided any forecasts regarding the results of the 2019 fiscal year.
Industrial free cash flow was $ 4.5 billion for the year, GE reported. Analysts Gordon Haskett, John Inch, said this indicator was closely watched by investors. Four billion US dollars were considered "as a key threshold".
The troubled power business of the company experienced a further decline compared with the previous year, with revenue down 25%. GE said that the food unit "was affected by continued execution and by operational problems".
The GE units of aviation, health care and Baker Hughes Oil and Gas all posted higher profits in the fourth quarter, although the Health and Baker Hughes businesses are well-defined. The aerospace business posted sales of $ 8.5 billion, up 21% from the fourth quarter of last year.
Last year, GE Capital sold $ 15 billion of badets and reduced its debt by $ 21 billion. The insurance portfolio closed the fourth quarter with badets of $ 124 billion. GE announced it has reached a $ 1.5 billion agreement in principle with the Department of Justice, which was investigating GE Capital's former WMC mortgage business. GE had already set aside $ 1.5 billion in reserves for a possible legal settlement with the GM regarding WMC.
The company did not provide an update on the US Securities and Exchange Commission's investigation into GE's accounting practices, which involved a $ 22 billion charge by GE in the third quarter to acquisitions made in the context of its energy-related activities. The DOJ had also expanded its investigation to include this charge.
GE's transportation business was down 18% year-over-year, but revenues increased 24% to $ 1.2 billion. The company is about to finalize its split towards Wabtec in February.
GE has created several businesses in 2018 to generate cash and reduce its footprint. The value of GE as a result of these spin-offs has been a hot topic of debate among Wall Street badysts.
The stock pickup surprised Wall Street badysts, who had warned that GE's shares could be overvalued for this earnings report.
J.P. Morgan's Stephen Tusa warned investors earlier this week that stocks could fall after the results. Tusa, who is widely followed for his calls on GE, said a level around $ 6 per share was the floor. GE closed Wednesday at $ 9.10 a share.
Tusa presented six "key questions" that GE is expected to answer this quarter, including an update of the issues faced by its new turbines and tips on how to tackle headwinds in the aviation sector.
Inch told customers that GE could also change the way it reports on its accounting. Transferring the company's presentation of the results in accordance with generally accepted accounting principles "would be a welcome relief," said Inch, although it may "shock" the market. The presentation of GE's results has not, in the past, included restructuring charges, which often exceed $ 1 billion per quarter.
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