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General Electric (GE - Free Report) is one of the largest and the most diversified technology and financial services companies in the world. Its products and services range from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, and industrial products.
Lackluster Results
The company reported adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of 50 cents by 41%. Revenues were however ahead of our estimate.
The company also significantly lowered its guidance for FY 2017. The company currently expects operating earnings of $1.05–$1.10 per share, significantly down from earlier guidance of $1.60-$1.70.
Falling Estimates
Analysts have lowered their estimates for the company after weak earnings. Zacks Consensus Estimates for the current and the next fiscal year have fallen to $1.44 per share and $1.47 per share from $1.56 and $1.66 respectively, 30 days back.
General Electric Company Price, Consensus and EPS Surprise
The company deferred its dividend decision for 2H, while announcing earnings results. The CEO said he would review the quarterly dividend, leading many analysts to believe that a dividend cut may be coming soon considering company’s cash flow position.
GE currently has a dividend yield of 4.3% and many income focused funds and investors hold the stock due to its juicy yield. Any cut in dividend could lead to further sell-off.
The Bottom Line
The stock has fallen to a Zacks Rank #5 (Strong Sell) after results as analysts continue to slash their estimates. Additionally, the stock has Style Score of “F” for Value, Growth as well as VGM. Investors should avoid the stock for the time being.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Bear of the Day: General Electric (GE)
General Electric (GE - Free Report) is one of the largest and the most diversified technology and financial services companies in the world. Its products and services range from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, and industrial products.
Lackluster Results
The company reported adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of 50 cents by 41%. Revenues were however ahead of our estimate.
The company also significantly lowered its guidance for FY 2017. The company currently expects operating earnings of $1.05–$1.10 per share, significantly down from earlier guidance of $1.60-$1.70.
Falling Estimates
Analysts have lowered their estimates for the company after weak earnings. Zacks Consensus Estimates for the current and the next fiscal year have fallen to $1.44 per share and $1.47 per share from $1.56 and $1.66 respectively, 30 days back.
General Electric Company Price, Consensus and EPS Surprise
General Electric Company Price, Consensus and EPS Surprise | General Electric Company Quote
A Dividend Cut in the Cards?
The company deferred its dividend decision for 2H, while announcing earnings results. The CEO said he would review the quarterly dividend, leading many analysts to believe that a dividend cut may be coming soon considering company’s cash flow position.
GE currently has a dividend yield of 4.3% and many income focused funds and investors hold the stock due to its juicy yield. Any cut in dividend could lead to further sell-off.
The Bottom Line
The stock has fallen to a Zacks Rank #5 (Strong Sell) after results as analysts continue to slash their estimates. Additionally, the stock has Style Score of “F” for Value, Growth as well as VGM. Investors should avoid the stock for the time being.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>