GE jumps most in 3 years on bright forecast

General Electric stuck with its 2018 profit forecast, powering shares to the biggest gain in three years as the beleaguered manufacturer defied expectations of a cut.

Strength in aviation and health care is shoring up confidence in the outlook for adjusted earnings of $1 to $1.07 a share, GE said in a statement Friday, just two months after its finance chief said the company was headed toward the low end of the range. Even that would be above the 95-cent average of analyst estimates compiled by Bloomberg.

“I’m excited about the path we’re on,” Chief Executive Officer John Flannery said on a conference call with analysts, discussing GE’s plan to turn itself around by cutting costs and strengthening the manufacturing operations. Flannery said he sees “green shoots” at GE, reprising former Federal Reserve Chairman Ben Bernanke’s phrase as the U.S. was emerging from the last recession.

The steady outlook offered a measure of comfort to investors who are reeling from one of the deepest slumps in GE’s 126-year history.

Flannery, who took over from Jeffrey Immelt last year, is weighing all options, including a breakup, as he seeks to turn around the maker of jet engines and power equipment.

GE’s new structure will give individual business units more autonomy, Flannery said on the call. Corporate operations, meanwhile, will narrow focus on “strategy, governance, capital allocation and talent.” The broad review of GE’s portfolio remains under way, he said.