On an adjusted basis, GE earned 16 cents a share, which was higher than the 11 cents a share than analysts expected.
“The first quarter is a step forward in executing on our 2018 plan and we are seeing signs of progress in our performance. Industrial earnings, free cash flow, and margins all improved year over year. We reduced Industrial structural costs by $805 million and are on track to exceed our cost reduction goal of $2 billion in 2018,” CEO John Flannery said in a statement.
Although GE shas a long way to go, analysts are seeing early signs of steps in the right direction. According to US News and World Report, “GE stock plummeted from above $30 per share in early 2017 to below $13 per share in early 2018, its lowest levels since 2011. In addition to guidance cuts, GE investors have suffered through credit rating downgrades, a dividend cut, an SEC investigation, a $6.2 billion charge related to GE Capital’s legacy insurance business and a restatement of 2016 and 2017 earnings based on new accounting standards.”
The first-quarter report offers a break for GE investors. Hopefully with time, GE can fully gain back their ground.
There was no new updates regarding Friday’s report of the SEC’s investigation into GE accounting.