GE profit expectations better than expected as it trims its cash flow target
New York/Bengaluru — US industrial conglomerate General Electric (GE) reported a smaller-than-expected drop in quarterly profit on Friday as weakness in power and renewables energy offset gains in its aviation, oil and gas, and healthcare units. GE cut its annual cash target to $6bn from a range of $6bn to $7bn, but affirmed its full-year adjusted earnings per share (EPS) target of $1.00 to $1.07. GE’s adjusted earnings, which exclude certain pension and restructuring costs, fell 10% to 19c a share, from a restated 21c a year ago. The result beat analysts expectations of 17c a share, according to Thomson Reuters. Analysts had cut estimates after GE’s weak first-quarter results. While the cash-target cut raised concerns, GE produced better-than-expected adjusted profit and there has been no bad news so far about ongoing accounting investigations, a shareholder lawsuit and a federal inquiry into sub-prime mortgage activity. "They didn’t screw up," said Nick Heymann, analyst at William...
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