General Electric is moving in the right direction coming into the middle of the week with a bit of a surprise to their investors. This after reports of third quarter profits and a positive free cash flow. In fact, the stock increased from 5.99% to 8.3% over the afternoon on Wednesday, following this announcement.
The volume has increased to over 180 million shares, which made it the most actively traded stock on the New York Stock Exchange for the day. These gains are definitely a big thing for the market when you consider the fact that the S&P 500 has seen it’s worst performance almost in all of their history.
This stock was actually the largest gaining stock in the S&P 500 index, with the market itself seeing a decrease of4.09%. In fact, only 23 of the stocks in the S&P 500 today actually gained at all, which reflects in the fact that the stock is continuing its downward trend.
On the other hand, GE is seeing some acceleration and is continuing to return the benefits and products that customers expect. Their net loss has narrowed from $9.47 billion, equaling out to $1.08 a share, to $1.19 billion, which equals out to only 14 cents per share. This is compared to the year ago period and includes an $8.7 billion charge related to offloading majority ownership of Baker Hughes and more.
This adjust earnings has actually beaten the consensus, which shows a per-share loss of 4 cents compared to the 6 cent amount expected. The shares for the company are now up 23.1% in October, which actually makes it the best performer month-to-date when considering the SPDR Industrial Select Sector’s exchange-traded fund. The fund is down 1.6% for the month.
Another fact that surprised investors and others about GE was the fact that their industrial free cash flow was $514 million in the clear while the estimate had been a $1.03 billion loss. With the third quarter reporting these benefits there’s a possibility that the stock will only continue to improve,, with an estimate now for a fourth quarter free cash flow of $2.5 billion. In 2021 the company expects to show a positive free cash flow.
This after originally stating that they thought they wouldn’t reach a positive free cash flow until the second quarter. But things are starting to look up for the company and there’s no telling what will be next.