General Electric (NYSE: GE) Reported positive fourth quarter results on Tuesday as well as a good outlook for 2021 amid flourishing sales in the power and renewable energy divisions. Shares rose 8.5% to USD11 a share during pre-market trading, amid the news.
The company finalized its fourth quarter with USD4.37 Billion in industrial free cash flow. CEO Larry Culp had previously estimated approximately USD2.5 Billion during the last three months of 2020. The novelty made General Electric’s industrial free cash flow positive for the year. The company now anticipates to produce anywhere from USD2.5 Billion to USD4.5 Billion in industrial free cash flow for 2021.
General Electric reported adjusted earnings of USD.08 per share in comparison to the anticipated USD.09 a share. Furthermore, revenue amounted to USD21.93 Billion, higher than analysts expected USD21.83 Billion.
“As 2020 progressed, we significantly improved GE’s profitability and cash performance despite a still-difficult macro environment. The fourth quarter marked a strong free cash flow finish to a challenging year, reflecting the results of better operations as well as strong and improving orders in Power and Renewable Energy.” Culp said in a statement.
In a conference call with analysts, Culp revealed that the ongoing Covid pandemic “hit us hard,” nevertheless, the company had been able to build its financial strength during the year. He said that General Electric is prepared to “play more offense in 2021.”