GE's Turnaround Is Just Getting Started
General Electric (NYSE: GE) investors couldn't have expected much better from the company's fourth-quarter earnings and 2021 guidance. In terms of the key metric to follow -- namely, free cash flow (FCF) -- the midpoint of management's guidance for this year implies a performance significantly ahead of the Wall Street consensus. Throw in evidence of better-than-expected improvements across the business and it's clear that GE's recovery is on a good track.
CEO Larry Culp has earned a reputation for under-promising and over-delivering during his tenure, and the Q4 results only served to confirm it. Having guided toward FCF of at least $2.5 billion, GE surprised the market by delivering a whopping $4.4 billion.
Cash is starting to flow again at General Electric. Image source: Getty Images.
Source Fool.com
