GE shares surge as it raises cash forecast despite earnings loss

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Under CEO Larry Culp's restructuring drive, GE shrank its quarterly loss, and its adjusted earnings easily beat analysts' expectations

) posted adjusted profits on Wednesday that beat analysts’ estimates and wowed investors by promising $1 billion more cash this year than it had previously forecast, sending its shares sharply higher.

But improvement in its aircraft and healthcare businesses, and “stabilization” at its power unit signaled “progress in the transformation of GE,” said Chief Executive Officer Larry Culp, who has called GE’s planned turnaround from a disastrous 2018 “a game of inches.”“People weren’t expecting the cash-flow increase,” said Deane Dray, an analyst at RBC Capital Markets in New York, who noted a lack of surprises in GE’s report. “The market was braced for bad news.

“The sweet number is $650 million in industrial free cash flow” in the quarter, said Nick Heymann, an analyst at William Baird and Co in New York, who expected $400 million to $500 million. While GE’s adjusted results beat expectations, GE’s report showed difficulty in key business lines, and Culp said there remains plenty of “work to do.”

The grounding, after a second fatal crash of the plane last March, means Boeing cannot deliver jets to airlines, and GE is not being paid for the engines it delivers to Boeing.

 

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ThatssRich that stock price tho 🤭

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