General Electric (NYSE:GE) stock fell 0.85% on February 14. The company has faced huge challenges in recent years as it has teetered on the edge of bankruptcy. Fortunately, General Electric has managed to avoid this fate so far. Its recent earnings report should also restore some faith in the Boston-based multinational.
The company released its fourth quarter and full-year results for 2019 on January 29. Earnings per share came in at $0.21 which exceeded expectations, and revenue hit $26.54 billion – also above analyst projections. Industrial free cash flow came in at $2.3 billion, which rose above GE’s own guidance.
Shares of General Electric rose 10% after the release of the results.
Bank of America upgraded the stock to a buy in response to the positive report. For its 2020 outlook, General Electric expects to see earnings in the range of $0.50 to $0.60 per share. This is still below the range that analysts have been hoping for. On the plus side, the company is projecting industrial free cash flow in the $2-billion-$4 billion range, which exceeds most analyst forecasts.
General Electric stock has been obliterated in recent years.
Unfortunately, it still does not offer great value especially after this post-earnings bump. There is decent growth potential, but investors will want to see improved earnings in the quarters to come. Value investors should await for another buy-the-dip moment, otherwise there are simply better options than General Electric right now.
