GE burns through $1.2 billion but Wall Street is happy it wasn't worse - CNN

GE's (GE) struggles continue to be driven by its slumping power division. Profit tumbled 71% in that unit as orders nosedived.

However, GE reported adjusted profits and revenue that exceeded forecasts. And GE's stock soared 7% in premarket trading as Wall Street bets the company's recovery remains intact.

GE is standing by its 2019 guidance for industrial free cash flow to range between negative $2 billion and zero.

"I am encouraged by the improvements we are making inside GE," CEO Larry Culp said in a statement. "This is one quarter in what will be a multi-year transformation, and 2019 remains a reset year for us."

That's despite the emergence of a new risk: the Boeing (BA) 737 Max crisis. A GE joint venture supplies the engines to the 737 Max, which has been grounded due to safety concerns.

"GE is also working arm in arm with Boeing while actively monitoring the grounding of the 737 MAX fleet," the company said.

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https://www.cnn.com/2019/04/30/investing/ge-earnings-stock/index.html

2019-04-30 10:59:00Z
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