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On Wednesday, General Electric reported slightly better results than expected on Wall Street in the second quarter.
GE's shares grew by more than 4.1% in pre-market transactions from the previous closing of $ 10.52 per share.
GE announced adjusted earnings of 17 cents per share, down 6% from the same quarter last year but above the expected 12 cents per share by Refinitiv badysts. The company also announced a lower turnover of $ 28.83 billion compared to the previous quarter, which was also a hair over the 28.68 billion USD badysts surveyed by Refinitiv.
The company also said its free cash flow for the second quarter was negative $ 1 billion. Investors closely monitor GE's free cash flow statistics as they show the remaining funds after operating expenses and capital expenditures. Especially in the case of GE, free industrial cash flow is used as an indicator of efficiency.
"Our strategic priorities have been steadily improving in the second quarter, our net growth has been strong and Power has significantly improved the reduction of fixed costs and project execution," said GE President and Chief Executive Officer. , Larry Culp.
GE's free cash flow appears to be stabilizing near Culp's forecast earlier this year. Some badysts expected GE to announce a second quarter free cash flow of between $ 1 billion and $ 2 billion. According to GE's press release, the free cash flow for the first half of the year was negative by $ 2.2 billion, which was similar to Culp's previous forecast of free cash flow for the year between a flat and negative $ 2 billion.
Culp has tempered investors' expectations for this year in earlier comments, while he was looking to transform GE. Culp said in March that GEB was expecting the gas turbine market to stagnate until 2020.
Despite Culp's warnings, GE's shares have grown nearly 45% this year, marking its best year since 1999.
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