GE stocks climb after company reports its quarterly results. Shares of General Electric surged as the industrial giant posted better than expected revenue on Thursday.
The company’s stock grew 11.7 percent, closing at $10.73 a share, following a loss of nearly 57% in 2018. the current stock would mark GE’s best one-day of trading since March 2009.
GE posted earnings per share of 17 cents on revenue of $33.28 billion, while analyst expected 22 cents on revenue of $32.6 billion.
“Our strategy is clear: de-leverage our balance sheet and strengthens our businesses, starting with Power,” CEO Larry Culp said. “We have more work to do, but I’m encouraged by the changes we’re making to strengthen GE and create value.
The company added 17 cents per share for its adjusted fourth-quarter earnings, a 60 percent drop than the previous year. It reported $4.5 billion industrial free cash flow for the year. However, GE didn’t post a forecast for full-year 2019 earnings.
GE’s power business struggled, with revenues declined 25 percent. Continued execution and operational problems negatively affected the power unit, according to the company. Earnings of units of aviation, Baker Hughes oil and gas, and health care all jumped in the fourth quarter. GE’s aviation business rose 21 percent to $8.5 billion than the previous year.
The transportation business saw 18 percent decline in profit while reported 24 percent to $1.2 billion growth in revenues. GE also said that it is ready to pay $1.5 billion for the settlement with the Justice Department, which is investigating a defunct WMC mortgage business.