CNNMoney correspondent Paul La Monica was a guest on Benzinga's #PreMarket Prep recently and discussed why General Electric Company GE is no longer "the bellwether it once was."
La Monica cited the company's fourth-quarter report, which included an earnings per share of $0.56, a penny higher than analysts expected.
“The only surprise with General Electric is when they don't beat by a penny,” La Monica said, adding that the company had “pretty reliantly” reported better-than-expected results.
However, La Monica added that he isn't sure the company is still the bellwether that it used to be.
“I'm not sure if part of it is because getting rid of NBC – it's not the ‘media darling' it used to be. It is a company that is clearly tied to the economy,” La Monica argued. “They have been making a lot of moves to try and maybe simplify the story.”
La Monica added that prior to the company's spinoff of its credit card division, the company may have looked “more like a bank than an industrial.” The company is now in the process of making the “right and necessary moves” to regain focus on the industrial part of the business.
La Monica concluded by stating that General Electric is “more about transportation, infrastructure and healthcare than lightbulbs.”
Check out the full interview in the video below:
Don't forget to tune in to Benzinga's #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.
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