Here's Why General Electric Stock Is Soaring

There's no doubt that better free-cash-flow (FCF) guidance was the catalyst for the startling jump in General Electric's (NYSE: GE) share price after its third-quarter earnings. The good news is, for the second quarter in a row, CEO Larry Culp raised that guidance and gave investors hope that better days are ahead.

Let's take a look at what happened and why it matters.

FCF is key to shareholders because it represents the cash the company can use to pay down debt, pay dividends, or initiate share buybacks. It's basically the cash that's left from earnings after working capital requirements (the cash used to run the business) and capital expenditures are taken out.

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Source Fool.com