General Electric‘s stock rose on Wednesday as the industrial conglomerate raised its 2019 forecast after reporting third-quarter earnings and revenue that topped analysts’ expectations.
GE shares rose 7.1% in premarket trading from its previous close of $9.07 a share.
Here’s what the company reported versus what Wall Street expected:
- EPS: adjusted 15 cents a share, vs. 11 cents a share expected, according to analysts surveyed by Refinitiv.
- Revenue: $23.36 billion, vs. $22.93 billion expected, according to analysts surveyed by Refinitiv.
“Our results reflect another quarter of progress in the transformation of GE,” Chairman and CEO Larry Culp said in a statement.
GE’s closely watched industrial free cash flow (FCF), which is used as a gauge of efficiency, totaled $650 million. Essentially, FCF is money left over after a company pays for operating expenses and capital spending. The company increased its 2019 forecast for industrial FCF to a range of flat to $2 billion, up from a range between negative and plus $1 billion.
“We are raising our industrial free cash flow outlook again even with external headwinds from the 737 Max and tariffs,” Culp said.