Shares of General Electric Company (NYSE:GE) were down 0.73% in late morning trading on March 14. The stock is down 18.4% in 2018 and 40% over a six-month stretch. In late January General Electric stood by its 2018 profit forecast which temporarily alleviated fears of its decline.
General Electric reported strength in its jet-engine and health-care business in the fourth quarter. GE aviation powered profit to rise 2.1% and sales in GE Healthcare were up 5.9%. However, adjusted profit missed analyst expectations and dropped to $0.27 per share.
CEO John Flannery was appointed in August 2017 and has been tasked with helming the largest turnaround in the company’s history. In 2017 General Electric turned in the worst performance on the Dow Jones Industrial Average. Shares have slid further after JPMorgan Chase & Co. cast doubt over its profit forecast this week.
In a note on Tuesday, analyst Steve Tusa said that the earnings guidance from management was “not a credible number”. Tusa cut the price target from $11 to $3, illustrating the dire situation facing General Electric stock right now. In late afternoon trading the stock was trading at $14.34, and it could have much farther to fall. Tusa cut his earnings projection to $0.88 per share compared to the $1 per share estimated by leadership.
General Electric offers a dividend of $0.12 per share. Investors should steer clear as the stock has plenty of downside going forward.
Related Stories
