William Blair analyst Nicholas Heymann believes General Electric's Q1 results on Friday "materially reduced" investor fears about the adequacy of the company's liquidity and the sustainability of its current 48c annual dividend. This was reinforced by much lower free cash flow use versus a year ago, larger than expected structural cost reductions, great clarity on additional asset dispositions, better than anticipated sales and adjusted earnings, and clarity around the adequacy of GE Capital's liquidity, Heymann tells investors in a post-earnings research note. He believes GE's 3.3% yield is now increasingly viewed as a compelling reason to own stock. While GE's challenges are "far from fully resolved," the risk of further downside due to liquidity constraints that might require equity sales or an additional reduction in the dividend appears to no longer represent a "material risk" to the stock, Heymann argues. He believes owning GE is likely to be "very rewarding" for investors. Heymann keeps an Outperform rating on General Electric. After rallying Friday, the shares are up another 13c to $14.67 in premarket trading

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Unusual total active option classes on open include: ImmunityBio (IBRX), Halliburton (HAL), Redfin (RDFN), Nokia (NOK), Matterport (MTTR), General Motors (GM), UPS (UPS), Philip Morris (PM), PepsiCo (PEP), and General Electric (GE).

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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."