The Key Takeaway From General Electric's Latest Presentation
Larry Culp is a CEO more used to underpromising and overdelivering than the other way around. It might seem simple enough -- just lowball guidance and declare victory when the numbers roll in -- but it's something that former General Electric (NYSE: GE) CEOs Jeff Immelt and John Flannery found impossible to do. So the hiking of guidance in the second quarter should be welcomed by investors, even if it was accompanied by a less-than-stellar performance on the operational front. Let's take a closer look at the puts and takes of GE's second quarter.
While Culp is known for outperforming expectations during his time at Danaher, now-departing GE CFO Jamie Miller's tenure will be remembered for a series of guidance cuts due to overly optimistic and inaccurate projections. Her departure will probably improve investor confidence in GE's ability to hit its near- and long-term targets -- something that Culp's gravitas helped buy for GE.
Turning to what's new in the current headline guidance, the table below shows the main changes.
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