Thoughts On General Electric Heading Into 'Judgment Day'

Oct. 27, 2018 6:30 AM ETGeneral Electric Company (GE)89 Comments
WG Investment Research profile picture
WG Investment Research


  • General Electric plans to release Q3 2018 results at the end of October and the company's new CEO will take center stage.
  • I will describe in this article the topic(s) that I would like to hear more about from the new CEO.
  • I am long General Electric and I plan to stay the course.
  • This idea was discussed in more depth with members of my private investing community, Going Long With W.G.. Start your free trial today »

As most people already know, General Electric (NYSE:GE) recently pushed back its Q3 2018 earnings release date from October 25 to October 30, 2018 and many analysts are nervously awaiting what the results/commentary may bring. The exact reason for the rescheduled release date is not fully known, but the company let investors know that the extra time would "allow GE Chairman and CEO Larry Culp to complete business reviews and site visits". The company also disclosed that Mr. Culp would share his initial observations of his review in October 2018 and will provide additional details in early 2019.

Anyhow, currently the important thing to highlight is the fact that GE's stock has given back almost all of its gain that it saw from the CEO change announcement.

ChartGE data by YCharts

In this article, I do not want to waste your time trying to guess what may happen when the company's new CEO speaks about GE's future state for the first time but, instead, I will spend a few minutes covering what I will be interested in hearing about later this month.

A Change In Strategy? What Is Really Going On With Power?

Mr. Culp will only have been CEO for about a month when GE reports Q3 2018 results, but, in my opinion, it should not take much time for the board and the current management team to describe what is really going on with Power. The old CEO, Mr. John Flannery, consistently referred to Power as a multi-year turnaround story, a point that I fully believe to be the case, but I am really interested in hearing Mr. Culp's initial thoughts about the Power unit's medium-to-long-term prospects. So far in 2018, this operating segment has been nothing short of a disaster.

Source: Q2 2018 Earnings Presentation

Again, I do

This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long GE, HON, UTX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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