General Electric stocks surge after better than expected Q4
General Electric Co beat estimates for sales and cash flow in the fourth quarter, sparking stocks to climb up to 18% on Thursday.
Shares hit their peak after the company said a deal to settle a subprime mortgage case with US investigators was in the works.
Analysts had low expectations for GE’s fourth quarter results and were surprised when the company’s quarterly results beat estimates.
GE reported a $666 million profit for the fourth quarter, and reported profit from continuing operation of 8 cents, comparing with a loss of $1.29 cents per share last year.
GE’s revenue rose 5% to $33.3 billion, above analyst estimates of $32.6 billion.
Analysts say the company recovered better than expected, particularly after it was hit with a $23 billion charge three months ago as it began restructuring under a new chief executive.
While Q4 reports were positive, GE’s 2018 revenue and profits are still marginally lower than better years, especially after the company was hit with an $11 billion charge under investigations by U.S. regulators.
GE stock soars post Q4 results
General Electric surged 14% in mid-day trading on Thursday, trading above $10 for the first time in almost three months. GE stock also briefly soared as much as 18% on Thursday as profits and sales rose.
In afternoon trading, the stock was up about 12% at $10.22. However, GE shares overall are down 65% over the past two years.
GE announces settlement with US regulators
GE also announced a settlement with US regulators over its subprime mortgage practices before the 2008 financial crisis. It comes after US department of justice investigations into GE capital’s WMC mortgage business.
GE was fined a $1.5 billion civil penalty as part of the investigations.
GE said its power unit took $400 million in charges in the fourth quarter, including blade repairs at dozens of customers around the world.
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