On Tuesday, General Electric Co. reported fourth quarter earnings that came in lower than expected by analysts. However, the conglomerate projected but strong industrial free cash flow growth for the coming year.
General Electric’s adjusted non-GAAP earnings for the three months ending in December plunged -62% year-over-year to 8 cents per share, one penny shy of the Street consensus forecast.
Revenues fell -16.5% from the year-ago quarter to $21.9 billion, slightly above the $21.822 billion expected by analysts.
“As 2020 progressed, we significantly improved GE's profitability and cash performance despite a still-difficult macro environment. The fourth quarter marked a strong free cash flow finish to a challenging year, reflecting the results of better operations as well as strong and improving orders in Power and Renewable Energy." said CEO Larry Culp.
Looking ahead, GE expects its adjusted earnings for the 2021 financial year in the range of 15 cents to 25 cents per share. It projects industrial free cash flows of between $2.5 billion and $4.5 billion.