GE's stock rallies after CEO Culp sees negative Q1 cash flow, but maintains full-year outlook
Shares of General Electric Co. rose 1.3% in morning trading, as investors took comments from Chief Executive Larry Culp about pressure on cash flows in the first quarter in stride, as the full-year outlook was maintained. Culp said earlier at the Barclays Industrial Select Conference that in light of the Boeing Co. 737 MAX "dynamics" this year, and with the outbreak of the coronavirus in China a "wild card," that he expects first-quarter free cash flow to be "in the range of negative $2 billion," according to a FactSet transcript. He said, however, that a "snap back that we know is inevitable" as the 737 MAX grounding issues are expected to be resolved in the second half of the year, so he still expects full-year FCF in the range of positive $2 billion to $4 billion. The stock, which had lost 3.1% over the past three days since closing at a 19-month high of $13.16 on Feb. 12, has rallied 12.3% over the past three months, while the Dow Jones Industrial Average has gained 5.0%.
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