Why Shares of General Electric Are Up Today
Shares of General Electric (NYSE: GE) traded up more than 7% on Wednesday morning after the industry conglomerate reported fourth-quarter earnings that came in above expectations and provided stronger-than-expected 2020 free cash flow guidance. GE is still in recovery mode, but the company's outlook has improved significantly since August, when a critic described it as "a bigger fraud than Enron."
General Electric on Wednesday morning reported adjusted fourth-quarter earnings of $0.21 per share on revenue of $26.2 billion, ahead of the consensus estimate for $0.18 per share in earnings on sales of $25.57 billion. Aviation led the way, with revenue up 6% year over year and orders up 22%, while renewable energy revenue was up 2% and healthcare and power revenue were flat.
Aviation margins in the quarter, at 23%, were 2.6% above the fourth quarter of 2019, and power margins at 5.6% were more than double the average of the prior quarters of 2019.
Source Fool.com
