General Electric Stock Gains On Q2 Earnings Beat, Positive Industrial FCF, Raised Outlook

General Electric Company GE reported second-quarter revenues growth of 8.8% year-over-year to $18.3 billion, beating the consensus estimate of $18.13 billion.
GE Industrial revenues were at $17.49 billion (+8.8% Y/Y), and GE Capital revenues were $858 million (-0.4% Y/Y), with total orders at $18.3B (+33% Y/Y).
The company says, during the quarter, orders and the revenue returned to growth, operating margins expanded across all segments, and they generated positive Industrial free cash flow. Momentum is building across all businesses, driven by Healthcare and services overall, with Aviation showing early signs of recovery.
Adjusted EPS improved to $0.05 compared to $(0.14) a year ago, beating the consensus estimate of $0.04.
Aviation segment revenues increased 10% Y/Y to $4.84 billion, and orders were up by 47% Y/Y to $5.49 billion. Healthcare revenues were up 14% Y/Y to $4.45 billion, and orders +14% Y/Y to $4.85 billion.
Renewable Energy revenues were $1.05 billion (+16% Y/Y), and orders were up 7% Y/Y to $3.21 billion, and Power revenues were up 3% Y/Y to $4.29 billion and orders increased 67% Y/Y to $$4.81 billion.
Adjusted GE Industrial profit margin recovered by 940 bps to 5.3%.
GE Industrial's free cash flows were $388 million, compared to $(2.07) billion a year ago.
FY21 Outlook: The company increased its Industrial free cash flow from $2.5 billion –$4.5 billion to $3.5 billion to $5.0 billion.
It expects GE Industrial revenues to grow organically in the low-single-digit range and Adjusted GE Industrial profit margin to expand organically by 250-plus basis points.
GE expects Adjusted earnings per share of $0.15 to $0.25, versus a consensus of $0.26.
Price Action: GE shares are up 2.94% at $13.30 during the market session on the last check Tuesday.
Photo by Momoneymoproblemz via Wikimedia

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