An employee of General Electric works on a gas turbine at the GE plant in Belfort, France.
Sebastien Bozon | AFP | Getty Images
General Electric is expected to report second-quarter earnings before the market opens on Wednesday.
Ahead of the report GE shares rose 1.6% in premarket trading from its previous close of $10.52 a share.
Here’s what Wall Street expects:
- EPS: $0.12 a share according to analysts surveyed by Refinitiv.
- Revenue: $28.68 billion according to analysts surveyed by Refinitiv.
Investors will be also looking to the company’s metric of industrial free cash flow — money left over after a company pays for operating expenses and capital spending. Especially in the case of GE, industrial free cash flow is used as a gauge of efficiency. Earlier this year GE forecast that 2019 industrial free cash flow would be between flat and negative $2 billion, while J.P. Morgan analyst Stephen Tusa said GE gave “an implied guidance” that second-quarter free cash flow would be between a negative $1 billion to negative $2 billion.
CEO Larry Culp tempered investor expectations for this year in previous comments, as he seeks to turn GE around. The company’s struggling power business “is in a serious turnaround mode,” Culp said in March, and GE expects the market for gas-powered turbines will remain stagnant through 2020.
Despite Culp’s warnings, GE shares are up nearly 45% this year — on pace for its best year since 1999.
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