GE Investor Day: 3 Crucial Takeaways You Might Have Missed
General Electric's (NYSE: GE) annual investor day event produced few surprises on 2022 guidance -- management merely maintained 2022 guidance. However, there was a host of information on 2023 and just how management plans to make its breakup plans work. On balance, GE's presentation was a net positive for investors, and the stock remains attractive even as there are some risks to its outlook. Here's why.
In recent years, GE has acquired a reputation for being conservative with guidance and then beating expectations, notably its free cash flow (FCF). Under CEO Larry Culp, GE has tended to give very wide guidance ranges and often exceeded them. Looking into the 2022 and 2023 guidance, it seems likely that GE is set up to do the same in the future.
Culp has done an excellent job framing investor expectations toward the key medium-term objectives. Specifically, he's looking for an adjusted operating profit of around $10 billion in 2023, with an FCF of more than $7 billion. It's an outlook he first outlined in the summer of 2021, and it's the same outlook given in the earnings presentation.
Source Fool.com
