Shares of General Electric Co. (GE) soared 8.5% toward a near 3-month high in very active trading ahead of Wednesday's open, after the industrial conglomeratebeat earnings expectations ( ), and as three of four business segments exceeded revenue forecasts. Trading volume spiked up to 13.7 million shares, enough to make the stock the most actively traded in the premarket. GE's power business continues to struggle, with orders down 30% to $3.86 billion and revenue falling 14% to $3.93 billion, which missed the FactSet consensus of $4.32 billion. Within power, gas power revenue rose 2% while power portfolio revenue fell 37%, largely driven by steam. Aviation orders slipped 4% but revenue rose 8% to $8.11 billion to top the FactSet consensus of $7.96 billion; healthcare orders grew 1% and revenue rose 5% to $4.92 billion, above expectations of $4.84 billion; and renewable energy orders jumped 30% to $5.02 billion as revenue increased 13% to $4.43 billion to beat expectations of $4.29 billion. Separately, GE raised its 2109 industrial free cash flow guidance range to zero to $2 billion from negative $1 billion to positive $1 billion, and expects FCF to be "positive" in 2020 with "further acceleration" in 2021. The stock, which was on track to open at the higher price seen during regular-session hours since Aug. 2, had lost 13.8% over the past three months through Tuesday but has climbed 24.6% year to date, while the Dow Jones Industrial Average has slipped 0.5% the past three months but has gained 16.1% this year.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 30, 2019 09:04 ET (13:04 GMT)
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