Boston’s General Electric reports smaller cash outflow, reaffirms 2021 outlook

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Boston’s General Electric reports smaller cash outflow, reaffirms 2021 outlook

On Tuesday, General Electric, the Boston-based 129-year old American multinational conglomerate, had unveiled quarterly earnings’ report for its fiscal first quarter of 2021, which had witnessed a much lower-than-anticipated cash outflow despite the conglomerate’s struggling jet business amid a pandemic-induced drawdown in global aviation industry.

Although, the Boston-headquartered multinational conglomerate operating across a swathe of segments ranging from aviation to healthcare to energy, had entwined itself around a prior estimate on full-year free cash flow - a key determinant for General Electric’s ability to pay down debts and to clock profitabilities - alongside earnings per share outlook, investors appeared to be disappointed since a lion’s share of them had been anticipating an upgrade on General Electric’s 2021 outlook, eventually leading to a 3.55 per cent plunge in the shares’ prices of General Electric on pre-market trading.

Nevertheless, NYSE-listed shares’ prices of General Electric, which had gained as much as 145 per cent since last May, had pared much of its losses in late-afternoon US session and were last trading 1.11 per cent lower to $13.42 per share.

General Electric reaffirms 2021 profit outlook, but investors disappointed

Apart from that, according to General Electric’s quarterly earnings’ report published earlier in the day, the aviation-to-energy multinational conglomerate had reported a $17.12 billion in first-quarter revenues, missing an analysts’ estimate of $17.5 billion and down about 12 per cent compared to the same time a year earlier, IBES data from Refinitiv had unfurled, as General Electric’s lucrative aircraft engine business kept draining fresh liquidities amid a global-scale ban on international travels.

GE’s aircraft business which turned to a cash cow over recent months largely due to the pandemic’s fiscal consequences, reported a revenue of $4.99 billion on Q1, 2021 that ended on March 31, down about 28 per cent on a year-on-year basis.

On top of that, General Electric’s net income stood at 3 cents per share over first three months of 2021, above an earning of 2 cents a share registered at the same time a year earlier.