General Electric’s revenues declined by 17% in the third quarter of the fiscal year.
The American multinational reported a net loss of £920 million in the third quarter.
General Electric’s cash flow also turned positive in the third quarter.
General Electric Co. (NYSE: GE) announced on Wednesday that its third-quarter revenues from fiscal operations shrank less than expected. The company also reported an unexpected profit on an adjusted basis. Its cash flow was also positive in the third quarter.
General Electric saw a jump of about 5% in pre-trade trading on Wednesday and gained another 3% when markets opened. In the year to date, the company’s shares on the stock exchange have now fallen by about 35%.
General Electric’s financial results for Q3 compared to analysts’ estimates
General Electric reported a net loss of £920 million for the third quarter, or 10.77 pence per share. In the same quarter last year the company reported a significantly higher loss of £7.29 billion or 83 pence per share. In early October, GE announced its commitment to phasing out coal-fired power stations and switching to renewable energy sources.
Adjusted for non-recurring items, General Electric earned 4.62 pence per share in the last quarter compared to 11.54 pence per share in the same period last year. In comparison, analysts had expected the company to post a third-quarter loss of 3.08 pence per share according to FactSet.
The U.S. multinational conglomerate valued its industrial free cash flow at £395.53 million versus an expected negative £790 million. In terms of revenue, General Electric recorded £14.94 billion, down 17% on an annualized basis. The FactSet consensus for GE’s Q3 revenue was a lower £14.41 billion. In the previous quarter (Q2), the Boston-based company reported revenues of £13.62 billion.
Other prominent figures in General Electric’s earnings report
Other prominent figures in General Electric’s profit report on Wednesday include a 3% drop in electricity revenue to £3.10 billion. Renewable energy revenues were down 2% year on year to £3.49 billion. Aviation revenue was down 39% to £3.79 billion in the third quarter, while healthcare revenue was down 7% year on year to £3.52 billion.
According to FactSet, experts had estimated revenues from these four segments at £2.99 billion, £3.45 billion, £3.81 billion and £3.19 billion respectively. CEO Larry Culp commented on the financial report on Wednesday and said
“We are improving our profit and cash performance with organic margin expansion in all segments except aviation, although orders in the broader sense remain under pressure”.
In a previous month’s estimate, Culp had been positive about free cash flow in the second half of the fiscal year. At the time of writing, General Electric is estimated at 52.40 billion pounds sterling….