GE's stock gains after affirming 2020 outlook
Wednesday, Mar 04, 2020 09:23 by InvestingPie

Shares of General Electric Co. GE, -0.05% rallied 2.7% in premarket trading Wednesday after the industrial conglomerate provided a downbeat first-quarter profit outlook but maintained its full-year guidance on earnings and free cash flow, despite the negative impacts expected from COVID-19. The company said it expects first-quarter adjusted earnings per share of 10 cents, which is below the FactSet consensus of 13 cents, and negative free cash flow of about $2 billion. GE said while COVID-19 is an "evolving variable," it currently expects a negative impact on first-quarter free cash flow of about $300 million to $500 million, and on operating income of $200 million to $300 million. The impacts are included in GE's 2020 outlook. GE affirmed its full-year guidance for adjusted EPS of 50 cents to 60 cents--the FactSet consensus is 59 cents--and for free cash flow of $2 billion to $4 billion. Within its business segments, GE expects 2020 free cash flow for power to be "better but negative," for renewable energy to be "lower," for aviation to be "flat to up" and for healthcare to be "up (ex. BioPharma)." GE said its 2020 outlook includes its expectation that Boeing Co.'sBA, -1.06% 737 MAX aircraft will return to service in mid-2020. The stock has slipped 0.2% over the past three months through Tuesday, while the Dow Jones Industrial Average DJIA, +2.10% has lost 6.3%.

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Very informative
05-03 04:23 by Liam
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