William Blair analyst Nicholas Heymann senses that the prospects are rising for a "possible material expansion" of the sale of non-core General Electric businesses versus the company's original earlier plans last updated in June 2018. GE's risk profile is likely to "significantly improve" as uncertainties regarding its financial leverage, litigation and government investigations, unfunded liabilities, and operational turnaround plans for Power are likely to emerge over the next few months, Heymann tells investors in a research note partially titled "End of Apocalypse Scenarios Now at Hand." Specifically, the analyst sees a rising likelihood that GE may accelerate the timing and size of its original plans for the initial public offering of GE Healthcare. Further, the prospects for GE Commercial Aviation Service to be sold at or above book value are also rising while the non-core 20% of GE Digital recently recast into a separate business could lead to it being monetized, says the analyst. Collectively, Heymann estimate the potential monetization of these two new asset sales, along with a larger Healthcare IPO sooner than originally envisioned, could enhance GE's liquidity by as much as about $50B-$55B, beyond the company's previously disclosed June 2018 corporate transformation plan. The analyst, however, believes GE's free cash flow will remain "significantly challenged" throughout 2019 while it works to resurrect Power's profitability by right-sizing its global fossil turbine production capacity. He maintains an Outperform rating on General Electric.

Expects FY24 margins up about 50 bps vs. flat previously. Says "encouraged" by strong start to year.

Says all segments contributed to growth in Q1. Says "great confidence" in forward trajectory. Says demand "remained resilient" in Q1. Says can track about 80% of delivery challenges to 15 suppliers. Comments taken from Q1 earnings conference call.

Sees FY24 revenue growth LDD+, consensus $36.43B. Sees FY24 free cash flow greater than $5B, greater than 100% conversion. Commercial Engines & Services: Continue to expect revenue growth of mid-to-high teens and increasing operating profit to a range of $6.1 to $6.4 billion, up from our original guidance of $6.0 to $6.3 billion. Defense & Propulsion Technologies: Continue to expect revenue growth of mid-single-digits to high-single-digits and operating profit of $1.0 to $1.3 billion. Corporate: Continue to expect cost of approximately $1 billion, including $600 million of expense and $400 million of eliminations.

Reports Q1 revenue $16.1B, consensus $15.34B. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, "We marked a new beginning in early April with the successful spin-off of GE Vernova and launch of GE Aerospace, completing our multi-year transformation. Our teams achieved this milestone while delivering strong results in the first quarter led by significant profit and cash growth at GE Aerospace." Culp continued, "At GE Aerospace, Commercial Engines & Services and Defense & Propulsion Technologies drove double-digit revenue, profit and free cash flow growth in the quarter. Given our solid start to the year and outlook for the remainder of 2024, we are raising our full-year profit and free cash flow guidance. Moving forward as a focused global aerospace leader, we will continue to prioritize safety, quality, delivery, and cost - always in that order - while also investing in our future and driving long term profitable growth."