GE continues its turnaround

Article Excerpt

GENERAL ELECTRIC CO. $105 is still a hold. The company (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $115.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 0.3%; TSINetwork Rating: Average; www.ge.com) continues to see rising demand for its jet engines and other industrial equipment as COVID-19 shutdowns ease. In the second quarter of 2021, GE’s revenue rose 8.8%, to $18.28 billion from $16.81 billion a year earlier. It earned $0.40 a share in the quarter, compared to its year-earlier loss of $1.12 a share (all per-share amounts adjusted for a 1-for-8 reverse stock split in August 2021). Given a restructuring plan, including job cuts and plant closures, GE expects its industrial businesses to generate free cash flow (regular cash flow less capital expenditures) of $3.5 billion to $5.0 billion for 2021. The savings will help the company lower its debt, which totalled $63.5 billion on June 30, 2021. That’s high at 55% of…

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