Typical Electrical reported lessen-than-predicted quarterly earnings on Tuesday but its shares rose as traders targeted on the strong income movement that concluded the 12 months.

For the fourth quarter, GE earned 8 cents for each share on an altered foundation, missing analysts’ estimates of nine cents for each share. But the corporation closed the quarter with $four.37 billion in industrial absolutely free income movement, a shock right after CEO Larry Culp projected at the very least $two.five billion for the last 3 months of the 12 months.

The strong quarter pushed the company’s industrial absolutely free income movement into optimistic territory for the 12 months.

“As 2020 progressed, we drastically enhanced GE’s profitability and income efficiency despite a however-hard macro natural environment,” Culp stated in a news release. “The fourth quarter marked a strong absolutely free income movement finish to a hard 12 months, reflecting the effects of greater functions as nicely as strong and bettering orders in Power and Renewable Power.”

The inventory jumped two.seven{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $11.29 as GE also projected it would deliver $two.five billion to $four.five billion in industrial absolutely free income movement for 2021.

“Some traders are bullish on the company’s turnaround underneath Culp, specially as he forecasts optimistic income movement for 2021,” CNBC stated. “GE has continued to pay out down its financial debt all through the pandemic and cut prices via, for case in point, layoffs in its aviation organization.”

Typical Electrical strengthened its balance sheet above the past 3 months, partaking in partnerships, acquisitions, and charge-saving initiatives that reduced pension debt by $two.five billion. The corporation has reduced complete financial debt by roughly $fourteen.five billion in 2020 and $28 billion given that the start of 2019.

Gordon Haskett analyst John Inch cautioned, nevertheless, that “strong absolutely free income has been a hallmark of the economic downturn for pretty much all industrial corporations that have unveiled operating money owing to weak revenue.”

In the fourth quarter, GE’s earnings rose sixteen{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $21.ninety three billion, topping estimates of $21.83 billion, as an increase in orders in the ability and renewable electrical power firms offset declines in aviation and wellness treatment.  

The ability organization reported a 26{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} increase in orders to $five.sixty two billion, pushed mainly by strong revenue of gasoline ability machines.

earnings, Typical Electrical, industrial absolutely free income movement, Larry Culp, turnaround