General Electric (NYSE:GE) shares rose marginally Wednesday after second-quarter earnings topped expectations and the battered conglomerate gave a better-than-expected outlook for its industrial cash flow.
GE reported adjusted earnings of 17 cents a share, down 6% from the same quarter last year but above the 12 cents a share anticipated by analysts. The company also reported revenue of $28.83 billion, lower than a year earlier but slightly above the $28.68 billion analysts expected.
The company raised its forecast for this year’s earnings to a range of 55 cents to 65 cents a share, up a nickel on both ends from its previous range.
GE CEO Larry Culp commented, "We made steady progress on our strategic priorities in the second quarter. Our top-line growth was solid, and Power made meaningful improvements on fixed cost reduction and project execution."
The company raised its 2019 forecast for industrial free cash flow to a range between negative and plus $1 billion, up from the previous range of negative $2 billion to flat.
GE’s metric of industrial free cash flow is closely watched by investors, as it shows what money the company has left over after paying for operating expenses and capital spending.
GE’s industrial free cash flow for the second quarter was a negative $1 billion, near the higher end of what some analysts expected. Culp said the better cash flow was in part because of “improvements” in the company’s struggling power business.
Shares eked up three cents early Wednesday morning to $10.55
