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.