GE shares gain after FCF earnings and beats, while earnings have fallen surprisingly

Shares of General Electric Co. GE,
+1.20%
rose 1.0% in pre-market trading on Tuesday, after the industrial conglomerate reported third-quarter profit and industrial free cash flow that exceeded expectations, but revenues that fell surprisingly, while delivering optimistic earnings outlook for the full year. On a net per share basis, GE fell to a profit of $ 1.08 from a loss of $ 1.09 in the prior year period. Excluding one-time items, Adjusted EPS was 57 cents, beating the FactSet consensus of 43 cents. Revenue fell 0.5% to $ 18.43 billion from $ 18.53 billion, while the FactSet consensus was in favor of an increase to $ 19.29 billion. Industrial free cash flow was $ 1.7 billion, while estimates from two analysts polled by FactSet ranged from $ 670.0 million to $ 1.07 billion, with an average of $ 870.5 million. dollars. For 2021, the company has reduced its forecast range to $ 3.75 billion to $ 4.75 billion, from $ 3.5 billion to $ 5.0 billion. Among GE’s businesses, Aviation revenue grew 10% to $ 5.40 billion, but missed the FactSet consensus of $ 5.59 billion; Healthcare revenues fell 5% to $ 4.34 billion, below expectations of $ 4.60 billion; Electricity revenues were little changed at $ 4.26 billion, above forecast of $ 3.82 billion; and renewable energy revenue fell 7% to $ 4.21 billion, falling short of expectations of $ 4.66 billion. GE has raised its 2021 adjusted EPS forecast range from $ 1.80 to $ 2.10 from $ 1.20 to $ 2.00. GE stock has gained 1.9% over the past three months, while the S&P 500 SPX,
+ 0.47%
changed to 3.3%.


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