GE Aerospace falls despite earnings beat as costs and cash flow disappoint
-3.67% to $299.87 from $311.28
What moved GE
- Adjusted EPS of $2.25 beat the roughly $2.00 consensus, with revenue of about $13.29 billion topping the roughly $12.85 billion estimate.
- Orders rose 49% and the commercial services business grew 23%, and the company raised its full-year outlook.
- Free cash flow fell about 9% year over year to roughly $2.0 billion, below the roughly $2.2 billion analysts expected, while sales allowances and reserves rose sharply.
- Analysts pointed to GE9X engine program losses, estimated at roughly $300 million, as a headwind even as Jefferies and Vertical Research Partners both reiterated Buy ratings.
Sources: Yahoo Finance · Investing.com · The Motley Fool