New York (CNN Business)General Electric's comeback under CEO Larry Culp continues.
The slimmed-down conglomerate, which has been shedding assets and paring back debt under Culp, reported strong fourth quarter earnings Wednesday.
Under Culp, GE has sold off big chunks of its business and the company is now focused on aerospace, healthcare, power and renewable energy.
Shares of GE (GE) surged 10% on the news. The stock is up more than 50% during the past year.
The company reported an adjusted profit of 21 cents a share and revenue of $26.2 billion, up 4.6% from a year ago. Wall Street analysts were expecting a profit of 18 cents a share and sales of $25.6 billion.
GE also gave its first look at its 2020 outlook, predicting revenue growth in the low- to single-digits and earnings of about 50 cents to 60 cents a share. The profit guidance is a bit below estimates.
But investors were heartened by GE's strong cash flow forecast. The company predicted that its industrial unit would generate free cash flow of between $2 billion and $4 billion this year.
GE said in a press release that a big portion of its outlook depends on the return of Boeing's troubled 737 Max to the air sometime in mid-2020. GE's massive aviation business is a supplier of components to Boeing (BA).
The company said that it "continues to work closely with Boeing to ensure the safe return to service of the 737 Max."
GE's aviation unit is the company's largest, accounting for more than a third of overall sales. Despite the problems plaguing Boeing, GE's aviation business still reported healthy gains in orders, sales and profit for the fourth quarter.
Overall, the numbers and outlook were solid for GE considering the major financial problems that have afflicted the company in the past few years.
"We're proud of our progress in 2019, including decisive actions to reduce our leverage and strengthen our businesses," Culp said in a statement, adding that "we are solidifying our financial position, continuing to strengthen our businesses as improvement efforts build momentum, and driving long-term profitable growth."
