GE Slips Premarket As Reiteration of Outlook, Profit Drop Disappoint

imageStock Markets14 minutes ago (Apr 27, 2021 07:37AM ET)

(C) Reuters.

By Dhirendra Tripathi – Shares in General Electric (NYSE:GE) were trading weaker premarket Tuesday as the company declined to raise its guidance higher despite growing signs of an upturn for its its key jet engine business.

Industrial cash flow, the key metric tracked by analysts, improved to an outflow of $845 million from $2.2 billion a year ago, but the performance of the jet engine business disappointed, posting revenue of less than $5 billion, some 6% below expectations.

GE shares have been trading near their 52-week high of $14.41.

The company sees its industrial revenues, that comprise more than 90% of the total, growing organically by a low single-digit percentage this year.

Adjusted industrial profit margin is seen expanding by 250-plus basis points while adjusted earnings per share is seen between $0.15 and $0.25.

Profit at its industrial segment fell 20% from a year ago to $828 million in January-March and total revenues dropped 12% to $17.11 billion.

Barring renewable energy, orders in key segments like aviation, healthcare and power were all down from last time.

GE Slips Premarket As Reiteration of Outlook, Profit Drop Disappoint

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