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Updated: January 29, 2020

GE's comeback continues

By Paul R. La Monica | CNN Business

General Electric's comeback under CEO Larry Culp continues.

The slimmed-down conglomerate, which has been shedding assets and paring back debt under Culp, reported strong fourth quarter earnings Wednesday.

HBJ File Photo
General Electric's former Fairfield headquarters.

Shares of GE surged 5% on the news. The stock is up nearly 40% during the past year.

The company reported an adjusted profit of 21 cents a share and revenue of $26.2 billion, up 4.6% from a year ago. Wall Street analysts were expecting a profit of 18 cents a share and sales of $25.6 billion.

GE also gave its first look at its 2020 guidance, predicting revenue growth in the low- to single-digits and earnings of about 50 cents to 60 cents a share. The profit guidance is a bit below estimates.

GE said in a press release that a big portion of its outlook depends on the return of Boeing's troubled 737 Max to the air sometime in mid-2020. GE's massive aviation business is a supplier of components to Boeing.

The company said that it "continues to work closely with Boeing to ensure the safe return to service of the 737 Max."

But overall, the numbers and outlook were solid for GE considering the major financial problems that have afflicted the company in the past few years.

"We're proud of our progress in 2019, including decisive actions to reduce our leverage and strengthen our businesses," Culp said in a statement, adding that "we are solidifying our financial position, continuing to strengthen our businesses as improvement efforts build momentum, and driving long-term profitable growth."

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