General Electric Company (NYSE:GE) stock was down 0.18% at the end of the noon hour on November 3rd. Shares are down 19% since the company released its third-quarter results on October 20th.
General Electric revenue was up 14% to $33.47 billion but profits in its power business dropped 51% to $611 million compared to $1.3 billion in the previous year. The company reported a loss in its oil and gas business dropped to a $36 million loss from posting net income of $353 million in Q3 2016. Its businesses continue to struggle as the company has reported that is has been unable to generate cash flow.
The company appointed new Chief Executive Officer John Flannery on June 12, 2017. In the third-quarter earnings call Mr. Flannery stated his intention to review all business segments as well as a plan to divest more than $20 billion worth of assets by 2020.
In response to a prolonged period of disappointment the company has committed to restructuring, but it has been slow going. Reportedly the company plans to spin-off its transportation business, and possibly its healthcare business.
The stock has dropped 29.5% year over year. It does offer a dividend of $0.24 per share representing a 4.8% dividend yield at offering. This is a risky play going forward and analysts are skeptical that the company will be able to achieve the dramatic restructuring of its many businesses that is required.
