GE +4% after EPS beat, guidance raise; CFO to resign
Jul. 31, 2019 7:27 AM ET|About: General Electric Company (GE)|By: Yoel Minkoff, SA News Editor
Adjusted Q2 EPS of $0.17, down 6% from the same period in 2018, but the figure beats low earnings expectations of $0.12.
Adjusted industrial free cash flow was negative $1B during the quarter, coming in at the strong end of company guidance. Investors are closely monitoring the outflow to gauge the health of the company, which is in the midst of a multi-year turnaround plan.
Costs associated with GE's industrial restructuring are also anticipated to come in less-than-expected. The company now sees the expenses for 2019 at $1.7B-$2B (vs. $2.4B-$2.7B). The revision was a result of "a combination of timing, attrition," and "executing projects at lower cost than projected."
Separately, CFO Jamie Miller said she will step down from her role but will remain with the company during the leadership transition.
Excluding a hit from the grounding of Boeing's 737 MAX, GE raised its full-year 2019 guidance "due to improvements at Power, lower restructuring and interest, higher earnings, and better visibility at the half."
Outlook for 2019: Adjusted EPS of between $0.55-$0.65 (up from $0.50-$0.60), while adjusted industrial FCF is forecast to be -$1B to $1B (vs. a prior target of flat to -$2B). |
