5 Key Conclusions From General Electric Company's Investor Update
On Monday, General Electric Company (NYSE: GE) CEO John Flannery finally updated investors on his strategic plan for the company, and by now, most investors will know that it involves cutting the annual dividend yield in half to $0.48. The dividend cut is painful, but if it helps get the company back on track and the stock price appreciates accordingly, most investors would be happy. Indeed, Flannery took center stage during the update conference call in order to convince shareholders that he is the man for the job. However, in analyzing the presentation, it becomes clear that the person responsible for executing the plan is probably going to be someone else. Let's take a look at the key takeaways from the update and find out who that person is.
General Electric Company's investment prospects depend on its power segment. Image source: General Electric Company.
Ever since the disastrous set of third-quarter earnings, investors were looking forward to the GE investor update in order to see where earnings and, in particular, cash flow would go in 2018. GE's cash flow projections for 2017 implied it wouldn't be able to cover the dividend distribution from its cash flow generation alone, but what would 2018 bring?
Source: Fool.com