Shares of General Electric Co. (GE) surged 2.3% in premarket trading Wednesday, after the industrial conglomerate reported a second-quarter adjusted profit and revenue that topped expectations and raised its full-year outlook, as strength in renewable energy helped offset continued weakness in the power business. GE swung to a net loss of $61 million, or 1 cent a share, from income of $615 million, or 7 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS came to 17 cents, above the FactSet consensus of 12 cents. Total revenue fell 1% from a year ago to $28.83 billion, above the FactSet consensus of $28.68 billion. Within GE's business segments, power revenue dropped 25% to $4.68 billion to miss the FactSet consensus of $5.84 billion, aviation revenue rose 5% to $7.88 billion, just below expectations of $7.91 billion, healthcare revenue declined 1% to $4.93 billion to miss expectations of $5.04 billion, oil and gas revenue grew 7% to $5.95 billion to beat expectations of $5.73 billion and renewable energy revenue climbed 26% to $3.63 billion to exceed expectations of $2.37 billion. Industrial free cash flows was a negative $1.0 billion, compared with expectations of negative $1.25 billion. For 2019, the company raised its guidance range for adjusted EPS to 55 cents to 65 cents from 50 cents to 60 cents and its free cash flow outlook to negative $1 billion to positive $1 billion from negative $2 billion to flat. The stock has soared 44.6% year to date through Tuesday, while the SPDR Industrial Select Sector ETF (XLI) has climbed 22.2% and the Dow Jones Industrial Average has advanced 16.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 31, 2019 06:44 ET (10:44 GMT)
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