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July 27, 2021, 6:41 a.m. EDT

GE stock surges after profit and revenue beats, a surprise swing to positive free cash flow

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By Tomi Kilgore

Shares of General Electric Co. /zigman2/quotes/208495069/composite GE -0.86% shot up 4.0% in premarket trading Tuesday, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow. On a net basis, the loss per shares narrowed to 14 cents from 26 cents, while excluding nonrecurring items, GE swung to adjusted earnings per share of 5 cents from a loss of 14 cents to beat the FactSet EPS consensus of 3 cents. Revenue rose 9% to $18.28 billion, above the FactSet consensus of $18.14 billion. Industrial free cash flow was about positive $400 million, compared with the FactSet consensus of negative $338.3 million, and the company raised the 2021 FCF guidance range to $3.5 billion to $5.0 billion from $2.5 billion to $4.5 billion. Among GE's business segments, revenue for Aviation rose 10% to $4.84 billion, but was below the FactSet consensus of $5.16 billion; Healthcare revenue grew 14% to $4.85 billion, well above expectations of $4.30 billion; Power revenue rose 3% to $4.30 billion to top versus expectations of $4.09 billion and Renewable Energy revenue jumped 16% to $4.05 billion to exceed expectations of $3.87 billion. "Momentum is building across our businesses, driven by Healthcare and services overall, with Aviation showing early signs of recovery," said Chief Executive Lawrence Culp. GE's stock has run up 19.6% year to date through Monday, while the SPDR Industrial Select Sector ETF /zigman2/quotes/202026558/composite XLI -1.06% has gained 17.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.91% has advanced 17.7%.

/zigman2/quotes/208495069/composite
US : U.S.: NYSE
$ 100.47
-0.87 -0.86%
Volume: 10.72M
Sept. 17, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.32%
Market Cap
$110.28 billion
Rev. per Employee
$459,155
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/zigman2/quotes/202026558/composite
US : U.S.: NYSE Arca
$ 100.33
-1.08 -1.06%
Volume: 16.25M
Sept. 17, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,432.99
-40.76 -0.91%
Volume: 3.79B
Sept. 17, 2021 5:25p
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