General Electric Company (NYSE: GE)
Shares of General Electric Company briefly plummeted below $14 on Monday, as investors reacted to Friday’s news that the US Justice Department may take action with regard to alleged subprime mortgage infringements.
That update, which was in a filing with the SEC, also gave details about the expected restatement of General Electric’s 2017 and 2016 financial results. As par this information, some analysts suspect it will be quite hard for the company to reach its forecast of the 2018 fiscal year.
GE Earnings & Outlook
GE shares were recently trading down 2.5%, after sinking as low as $13.96, a level last seen in July 2010, when they touched $13.81. General Electric is in the middle of a restructuring effort and has nominated three directors as it works on downsizing its board.
The company announced it had reviewed its GE Capital Insurance portfolio in January, and decided to take a $6 billion after-tax charge in the 4Q of 2017, and will contribute $15 billion to shore up the reserves of the portfolio in the next seven years.
General Electric also restated its profit guidance for 2018 of $1 to $1.07 per share in its recent filing with the Securities & Exchange Commission. The company had previously projected earnings of $2 per share for the year.
General Electric’s Executive Comments
In a statement, John Brenna, who is GE’s lead Independent director said the following to say, “The new Board is unified in its mission to work with General Electric senior leadership and John Flannery to drive the company’s focus on superior performance and to maximize the long-term value of our world-class businesses for our shareholders.”
General Electric Company Profile
General Electric Company is a financial and technology services company that manufactures and develops products for the generation, distribution, transmission, utilization and control of electricity. It was founded in 1878 by Thomas A. Edison, and its headquarters are in Boston, MA.