Why Investors Shouldn't Be Chomping at the Bit to Own GE, Yet

Video credit: The Street
Published on July 31, 2019 - Duration: 01:44s

Why Investors Shouldn't Be Chomping at the Bit to Own GE, Yet

General Electric posted earnings before the bell Wednesday morning.

GE reported adjusted earnings of 17 cents a share in the second quarter, 5 cents higher than analysts' estimates.

Revenue declined 1% to $28.8 billion.

"We made steady progress on our strategic priorities in the second quarter.

Our top-line growth was solid, and Power made meaningful improvements on fixed cost reduction and project execution," said Larry Culp, CEO.

"Due to improvements at Power, lower restructuring and interest, higher earnings, and better visibility at the half, we are raising our full-year outlook for Industrial segment organic revenues, adjusted EPS, and Industrial free cash flows, and we are holding our margin guidance." While GE posted earnings that beat analyst expectations, Cramer said that Culp would not yet call GE's earnings strong just yet.

"I think he would say that aerospace is problematic because of the mass.

Healthcare is a little better.

They reported a strong industrial.

Let's do that.

They are just now, still getting their arms around power.

What you have to watch, Jamie Miller is going to be leaving as CFO and Larry's putting his own team in right now.

It's not necessarily a recreation of the great Danaher team, which is consistent, but here's what he's lacked.

He's lacked people that he can call and say, how's power doing today?

There's no one who thinks like that at power.

Now he's putting people in power," said Cramer.


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