General Electric’s (NYSE:GE) stock surged Wednesday after the industrial conglomerate raised its 2019 cash flow forecast and reported adjusted third-quarter earnings and revenue that topped analysts’ expectations.
On a non-adjusted basis, and including certain accounting charges, GE still lost $9.5 billion in the quarter.
Earnings per Share came in at an adjusted 15 cents a share, vs. 11 cents a share expected by analysts. Revenue was $23.36 billion, compared to the $22.93 billion expected.
"Our results reflect another quarter of progress in the transformation of GE," Chairman and CEO Larry Culp said in a statement.
GE said its closely watched industrial free cash flow, which is used as a gauge of efficiency, totaled $650 million. FCF is money left over after a company pays for operating expenses and capital spending. The company increased its 2019 forecast for industrial FCF to a range of flat to $2 billion, up from a range between negative and plus $1 billion.
GE reported a consolidated net loss of $9.5 billion for the third quarter. While improved from a $22.8 billion nonadjusted loss for the same period last year, the bottom line reveals GE is still a struggling industrial conglomerate in the depths of a turnaround.
The company’s troubled power division saw quarterly revenue fall 14% year over year to $3.9 billion from $4.6 billion as orders for its turbines and other products fell 30%. But the division recorded a $144 million loss, improved 79% from the $676 million loss it reported a year earlier.
Shares vaulted 81 cents, or 9%, to $9.89
