Financial Reporting

GE Beats Revenue Estimates, Reports Q2 Loss

Revenues were mainly driven by sales in the power and renewable energy divisions.
GE Beats Revenue Estimates, Reports Q2 Loss

General Electric reported revenue of $17.7 billion for the second quarter, slightly beating analyst estimates, but the company recorded a loss of 15 cents per share.

Analysts had expected a loss of 10 cents per share, according to a survey by Refinitiv.

“Our earnings performance was impacted by the ongoing impact of COVID-19 on our businesses, but industrial free cash flow was better than our expectations and previously communicated range,” CEO Larry Culp said in a statement. “We made faster progress on elements within our control, including our targeted cost and cash preservation actions.”

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The company also reported a loss of $2.1 billion in industrial free cash flow, beating its own guidance from earlier this year. Analysts had expected the company to burn through more than $3 billion in the second quarter.

It said its near-term liquidity needs were reduced by $10.5 billion during the quarter and was working to cut costs by more than $2 billion.

GE reported revenue from power was $4.16 billion and revenue from renewable energy was $3.51 billion, both above FactSet estimates. Revenue from aviation was $4.38 billion, below expectations.

“With respect to those things that are within our control, we think health care is well-positioned to lead, the turnarounds in power and renewables continue, and we’re expecting a multiyear recovery in aviation,” Culp said later on a call with analysts.

GE said it was planning to completely sell off its position in the oil services company Baker Hughes over a period of about three years, using proceeds from the sale to reduce its debt.

The company disclosed it owned more than 377 million shares in the company, with a market value of just under $6 billion as of Tuesday’s closing stock price.

Shares were down more than 4.8% in midday trading. GE’s stock price is down more than 38% for the year.

Shares of Baker Hughes are down 38% year-to-date.

Hussein Faleh/AFP via Getty Images