Larry Culp, CEO, General Electric
Scott Mlyn | CNBC
General Electric on Wednesday reported a revenue figure for the second quarter that slightly beat analyst expectations. However, the industrial giant’s bottom line took a bigger-than-expected hit as the company tries to weather the coronavirus pandemic.
Here’s how the company’s results compared with analyst expectations:
- Revenue: $17.7 billion vs $17.12 billion forecast
- Loss per share: 15 cents per share vs a loss of 10 cents per share expected by a Refinitiv survey of analysts
GE’s stronger-than-forecast revenues were mainly driven by sales in the power and renewable energy divisions. Revenue from power came in at $4.16 billion and renewable energy raked in $3.51 billion, both topping FactSet estimates. Revenue from aviation disappointed, totaling $4.38 billion.
The company also reported a loss of $2.1 billion in industrial free cash flow, which was better than the guidance issued by GE earlier this year.
“Our earnings performance was impacted by the ongoing impact of COVID-19 on our businesses, but Industrial free cash flow was better than our expectations and previously communicated range,” CEO Larry Culp said in a statement. “We made faster progress on elements within our control, including our targeted cost and cash preservation actions.”
GE shares were down 4% in midmorning trading.
The company said it continued working toward cost reductions of more than $2 billion and its “near-term liquidity needs” were reduced by $10.5 billion in the second quarter.
GE shares have taken a big hit this year, dropping more than 38% as the coronavirus pandemic shut down the economy and slowed air travel to a crawl.
—CNBC’s Michael Bloom contributed to this report.
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