General Electric reported stronger than forecast revenues and a surprise adjusted profit on Tuesday for the third quarter.
The results for the company were weaker than for the same quarter a year ago, due in part to the coronavirus pandemic, but were better than Wall Street analysts expected. Shares of GE jumped more than 5% in premarket trading after the results were released.
Here's how GE's results compared with Wall Street expectations:
- Revenue: $19.42 billion vs $18.73 billion forecast by analysts surveyed by Refinitiv.
- Earnings per share: 6 cents adjusted vs a loss of 4 cents per share expected.
Revenue for the industrial company's aviation unit fell 39% year over year but was partially offset by slight gains for the renewable energy and power segments.
The company lost 13 cents a share for the quarter on a non-adjusted continuing basis and including certain impairment charges.
"We are managing through a still-difficult environment with better operational execution across our businesses, and we are on track with our cost and cash actions," CEO Lawrence Culp said in a statement. "While our work continues, GE's transformation is accelerating, and we expect Industrial free cash flow to be at least $2.5 billion in the fourth quarter and positive in 2021."
The pandemic hit the company's aviation business hard during the spring, leading to furloughs and layoffs. GE's second quarter earnings, released in July, showed a wider-than-expected loss despite revenue topping estimates.
Shares of GE have lagged the broader market this year, shedding 36% year to date. The continues a long-term decline for the stock, which traded above $30 per share at the beginning of 2017 and currently trades around $7 per share.
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