GE Stock Jumped. There Is a Good Reason For That: Cash.

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General Electric

The stock jumped on Thursday. Good news about money and cash flow helped.

on thursday,

G.E

(Ticker: GE ) shares rose 1.8%, closing at $115.65, the second-highest closing price in the past 12 months. (Shares closed at $117.16 on July 25.)

The market gets some credit for the stock increase. of

S&P 500
And

Dow Jones Industrial Average
0.8% and 1% respectively. Management also gets some credit. Rahul Ghai, CFO of GE’s Aerospace Business, spoke at the Morgan Stanley Laguna conference on Thursday.

“As we sit here today, aerospace continues to perform well. Renewables and energy are on the way,” Guy said.

Third-quarter earnings are expected to be between 45 cents and 55 cents per share. Wall Street is projecting 55 cents. Analysts are at the upper end of the range.

Third quarter free cash flow is expected to be flat year over year. In the third quarter of 2022, free cash flow came in at around $1.2 billion. Wall Street projects free cash flow of about $900 million for the current quarter.

In the year As early as 2024 there was news about the planned arrival of GE Vernova, GE’s power generation business. Vernova starts life with more cash than debt. GE wants the business to be an independent company and have an investment grade credit rating. This should help.

After the spin-off, GE Aerospace led by Larry Culp, GE Vernova led by Scott Strzyk, and

GE Healthcare Technologies

(GEHC), led by Peter Arduni. GE HealthCare is already a different company. In the year It will complete its rotation in early 2023.

Upon completion of the GE separation, the remaining three businesses should be investment-grade credits with strong franchises in their respective industries.

Write to Al Root at [email protected]