(Reuters) – General Electric Co posted better-than-expected quarterly free cash flow on Tuesday and set an annual target for the key performance measure at $2.5 billion to $4.5 billion, as it benefits from a recovery at its power and renewable energy units.
The manufacturing conglomerate’s shares rose 4.8% as it reported free cash flow from industrial operations of $4.37 billion, GE said.
The company had previously predicted a cash flow of at least $2.5 billion in the fourth quarter and a return to positive cash flow for 2021.
Investors had expected about $2.6 billion in fourth-quarter cash flow and $3 billion in 2021, according to Refinitiv data.
Profit at GE’s power unit rose 3% in the quarter, compared with last year.
Adjusted profit for the fourth quarter ended Dec. 31 came in at 8 cents per share, compared with Refinitiv’s average analyst estimate of a profit of 9 cents per share.
(Reporting by Rachit Vats in Bengaluru; Editing by Saumyadeb Chakrabarty)
