Is General Electric stock a Buy, Sell or Hold?
General Electric stock has received a consensus rating of buy. The average rating score is and is based on 20 buy ratings, 5 hold ratings, and 0 se...
What was the 52-week low for General Electric stock?
The low in the last 52 weeks of General Electric stock was 71.16. According to the current price, General Electric is 110.68% away from the 52-week...
What was the 52-week high for General Electric stock?
The high in the last 52 weeks of General Electric stock was 116.12. According to the current price, General Electric is 67.83% away from the 52-wee...
What are analysts forecasts for General Electric stock?
The 25 analysts offering price forecasts for General Electric have a median target of 114.04, with a high estimate of 131.00 and a low estimate of...
What happened
Friday capped a topsy-turvy week for General Electric (NYSE: GE) stock, as a topsy-turvy last day of the week. After GE reported earnings early in the day, its stock quickly plummeted 6.3% in value -- then rebounded to actually end the day with a small gain of 1.1%. The question is: Why?
So what
Why GE stock dropped early in the day is no great mystery: Earnings were a disaster. Heading into the third-quarter report, analysts were expecting General Electric to report profits of $0.49 per diluted share. In actual fact, all it was able to come up with was $0.29 per share.
Now what
General Electric CEO John Flannery called Friday's results "unacceptable, to say the least." Aiming to regain those lost points of profit margin, and more, GE management announced a plan to cut annual operating costs by $1 billion, and sell off about $20 billion worth of underperforming assets over the next year or two.
The earnings miss was bad enough. But now orders are down, too
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
General Electric ( NYSE:GE) reported earnings this morning. Then its stock dropped.
So what
The news wasn't all bad -- revenues at least came in ahead of expectations at $17.75 billion -- but it was bad enough. GE's sales decline from last year's Q2 amounted to a 24% drop. And even the $0.15 loss GE incurred was only the pro forma number.
Now what
CEO Larry Culp called it "a very challenging second quarter," and it might not get much better soon. Orders, which help us figure out whether future revenues will grow or shrink, shrank 38% in Q2, an ugly foreshadowing of things to come.
What did GE sell for?
GE sells its aerospace unit, minus the aircraft engine operations, for $3.1 billion to a company that later becomes part of Lockheed Martin. A rogue trader causes GE to report a $350 million pretax loss and ultimately sell its Kidder, Peabody & Co. securities unit. GE’s revenues reach $100 billion for the first time.
How much money did GE get from the government?
Amid the worst recession since the Great Depression, GE receives $139 billion in government loan guarantees to shore up its capital arm and raises $15 billion through an emergency stock sale, a fifth of which comes from billionaire Warren Buffett. The company may not have survived the financial crisis without this backing.
How many segments does Bloomberg focus on?
For continuity, Bloomberg focused on eight segments, based on how the company’s been structured in recent years:
What did GE do under Flannery?
Under Flannery, GE was trying to cut costs, sell assets and reduce its debt load. A few weeks into his tenure, Culp pledged during a television interview to “look at everything and all of our options again with a sense of urgency.” The company has said that it can service its debt, thanks to planned asset sales, cash flow from remaining operations and credit lines with major U.S. banks, even if it is unable to sell new bonds. What remains to be seen is how much GE can garner from unloading businesses.
How many mergers and acquisitions has GE made since 1990?
To understand the causes and casualties of GE’s tumultuous recent history, Bloomberg News analyzed more than 1,300 mergers and acquisitions and investment deals since 1990 and pored over dozens of years of annual reports and regulatory filings. Here’s the company’s constantly changing financial picture as its portfolio was reshaped around several key business areas:
What is GE Capital?
GE Capital, which comprises most finance-related items, including specialty insurance, as well as financing for airplanes, energy equipment or consumer appliances. Healthcare. Industrial, which includes lighting, transportation, rail transportation, consumer appliances, and home and business solutions.
What is the lowest investment grade for GE?
GE’s stock falls to less than $7, from $42 in October 2007, and the company loses its sterling AAA credit rating, eventually falling seven levels into the BBB tier, the lowest category of investment grade. The year before, in mid-2008, GE’s outstanding debt peaked at more than half a trillion dollars.
2 Reasons Shareholders Should Love GE's Annual Report
Earlier this month, General Electric (NYSE: GE) filed its annual report with the SEC. While many investors ignore big SEC filings, due to their length and complexity, they often contain important tidbits -- if you dig far enough. GE's 2021 annual report had two pieces of very good news for shareholders.
GE Stock Slides As Supply Chain Headwinds Masks Progress
General Electric Co (NYSE: GE) issued an investor newsletter, mentioning continued supply chain pressure across most of its businesses as material and labor availability and inflation affect Healthcare, Renewable Energy, and Aviation. GE expects these challenges to persist at least through the first half of the year.
Why General Electric Stock Slumped Today
What happened Shares in industrial giant General Electric (NYSE: GE) fell by almost 6% midday as investors digested a management update on trading conditions in the first quarter. In the update, management noted continued supply chain pressure across three of its four segments, namely healthcare, aviation, and renewable energy.
GE Warns Supply-Chain Issues to Pressure Profits, Cash Flow
General Electric’s shares fell after the company warned that supply-chain problems, labor shortages and inflation would weigh on its financial results in the first half of the year.
UPDATE 2-GE warns of profit hit in first half from supply and labor issues
General Electric Co warned on Friday that a supply chain logjam coupled with a labor crunch and inflation will pressure profits through the first half of the year. In a regulatory filing, the company said the forecast, which was shared with investors last month, had factored in supply-chain and inflationary challenges.
GE warns of profit hit in first half from supply and labor issues
CHICAGO (Reuters) -General Electric Co warned on Friday that a supply chain logjam coupled with a labor crunch and inflation will pressure profits through the first half of the year. In a regulatory filing, the company said the forecast, which was shared with investors last month, had factored in supply-chain and inflationary challenges.
General Electric Stock Slides On Supply Chain, Labor Cost Hit to 2022 Profit Outlook
GE said Friday that the "magnitude" of supply chain and cost challenges could pressure its near-term profit forecasts.
What happened to GE in 2017?
In 2017, GE began a vast and costly restructuring. Poorly timed acquisitions and some execution missteps caused debt to balloon and GE earnings and cash to crumble.
What is the GE stock rating?
On key earnings and sales metrics, GE stock earns an EPS Rating of 56 out of a best-possible 99, and an SMR Rating of E, on a scale of A+ (best) to E (worst). The EPS Rating compares a company's earnings per share growth vs. all other companies, and its SMR Rating reflects sales growth, profit margins and return on equity.
What does a rising RS line mean?
It rallied in late 2020 and in early 2021, within a multi-year downtrend. A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the chart shown.
Why did Boeing stop making 737 Max?
In 2020, Boeing halted production of the 737 Max jet for a few months after two fatal flights, which weighed on Leap engine sales. On top of that, airlines parked planes and delayed or canceled orders due to the pandemic. Engine shop visits slowed while leasing customers sought short-term deferrals. As a result, GE Aviation slashed jobs by 25% and later warned of more cuts.
How much debt did GE cut?
Proceeds from the deal should allow GE to cut debt by $30 billion and bring the total slashed since 2018 to $70 billion. Eventually, General Electric is expected to exit jet leasing altogether, though it's taking a 46% stake in the combined company for now.
How much money did GE make in 2020?
In 2020, GE generated $606 million in FCF, down 66%, but beating its own guidance. In fact, General Electric turned cash-positive a year ahead of schedule. Out of 12 analysts on Wall Street, eight rate GE stock a buy and four have a hold, while none has a sell, according to TipRanks.com.
What is the RS rating of General Electric?
General Electric owns an RS Rating of 56, meaning it has outperformed 56% of all stocks over the past year. The Accumulation/Distribution Rating is a D, on a scale of A+ to a worst E. It's a sign of moderate selling of GE shares by big institutions over the past 13 weeks.
Who is retiring from General Electric?
But investors seeing these two situations play out today voted with their feet by exiting shares of General Electric ( NYSE:GE) on news that the CEO of its aviation division, David Joyce, is retiring.
Does the Fed help GE?
This move by the Fed will help GE, which is carrying more than $88 billion in corporate debt. But it doesn't solve GE's underlying problems today: trying to sell airplane engines to manufacturers like Boeing and Airbus, which are struggling to sell airplanes to airlines whose passenger traffic is way off in the a ge of the coronavirus.
