Shares of General Electric Co. GE,
rose 4.8% in pre-trading on Tuesday, after the diversified industrial conglomerate reported a profit in the fourth quarter, which missed expectations but the revenue and free cash flow that the forecasts achieved. In the previous year, net income increased to $ 2.44 billion, or $ 2.27 per share, from $ 538 million, or 6 cents per share. Excluding one-time items, adjusted earnings per share dropped to 20 cents from 20 cents, to miss the 9-cent FactSet consensus. Revenue fell 16% to $ 21.93 billion, above the $ 21.75 billion FactSet consensus, as all four of its business segments exceeded expectations. The industrial free cash flow was $ 4.4 billion, compared to the previous guidance of at least $ 2.5 billion. “The fourth quarter ended a strong free cash flow with a challenging year, reflecting the results of better operations, as well as strong and improved orders in power and renewable energy,” said CEO Larry Culp. For 2021, GE expects adjusted profits of 15 cents to 25 cents, less than the current FactSet consensus of 37 cents, and FCF of $ 2.5 billion to $ 4.5 billion, while Andrew Obin, analyst at BofA Securities, FCF leadership expects from about $ 1.5 billion to $ 3.5 billion. The stock has risen 48.9% over the past three months, while the S&P 500 SPX,
achieved 13.4%.
