Real Money's Stock of the Day General Electric (GE) issued fresh 2019 earnings guidance Thursday that missed analysts' forecasts, while confirming it will burn as much as $2 billion in cash in its industrial division. CEO Larry Culp warned that the first quarter of this "reset" year will be the weakest for the troubled conglomerate, reported TheStreet's Martin Baccardax.
GE said it sees full-year 2019 earnings in the range of 50 to 60 cents per share, well shy of the Street consensus forecast of 70 cents a share. The group also said adjusted industrial free cash flow burn could reach $2 billion, but said that figure will turn positive by 2020.
"GE's challenges in 2019 are complex but clear. We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses," said CEO Larry Culp. "We have work to do in 2019, but we expect 2020 and 2021 performance to be significantly better with positive Industrial free cash flow as headwinds diminish and our operational improvements yield financial results."
Jim Cramer thinks that the bad news isn't over for GE just yet, but he still likes Culp.
"I think the bad news is more secular," Cramer said.
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