General Electric (NYSE:GE) delivered fourth-quarter earnings on Wednesday that topped analyst expectations and gave a better-than-anticipated cash-flow forecast that signaled the troubled conglomerate could be turning around.
CEO Larry Culp reported,"The fourth-quarter marked a strong close to the year for GE. We met or exceeded our full-year financial targets and are on a positive trajectory for 2020."
The company, co-founded by Thomas Edison, reported Earnings per Share of 21 cents vs. 18 cents expected by analysts. Revenue was $26.24 billion compared to $25.57 billion expected.
GE’s metric of industrial free cash flow (FCF) came in at $2.3 billion for 2019, topping its own guidance of up to $2 billion. FCF is a financial measure often used as a gauge of efficiency.
While the company’s quarterly results were better than anticipated, GE’s 2020 earnings forecast came in below what analysts surveyed by FactSet expected. GE said it expects to see earnings of 50 to 60 cents a share next year, below the 67 cents a share analysts were looking for.
GE’s forecast for industrial free cash flow next year was also higher than expected. GE expects industrial FCF will come at $2 billion to $4 billion in 2020 — notably above the $1.2 billion expected by analysts.
Shares began Wednesday up 81 cents, or 6.9%, to $12.54
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