Shares of General Electric Co. GE, +2.66% sank 2.0% in premarket trade Thursday, after the struggling industrial conglomerate provided full-year profit outlook that was below expectations, as part of its corporate update for analysts and investors. The company said it expects 2019 adjusted earnings per share of 50 cents to 60 cents, compared with the FactSet consensus of 70 cents. GE said adjusted industrial free cash flow (FCF) is expected to be negative $2 billion to flat, after Chief Executive Larry Culp said last week that cash flow would be negative. The company expects positive FCF in 2020, and the pace of improvement to accelerate in 2021. GE said it remains committed to a financial policy targeting a credit rating in the single-A range, which is one notch above the current BBB+ rating S&P Global Ratings. GE’s stock has run up 46.8% over the past three months but is still down 27.0% over the past 12 months, while the Dow Jones Industrial Average DJIA, +0.58% has gained 6.7% the past three months and tacked on 3.8% the past year.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.