It appears that investors concerns for GE were well founded after the company posted its third quarter earnings today. Business Insider reports:
General Electric Co.’s third-quarter profit missed Wall Street estimates by a wide margin Friday and the industrial conglomerate slashed its earnings forecast, sending the year’s worst-performing Dow stock down by another 6%.
The quarterly results are a massive blow for the company as they continue to struggle to turn their fortunes around. Business Insider explains that:
GE said weak performance in its power and oil and gas businesses, goodwill impairment, and higher-than-expected restructuring costs under its new CEO, John Flannery, were the main causes of the profit decline.
GE has been consistently under-performing all year and this latest news may be the last straw for investors. Bloomberg columnist Brooke Sutherland expressed concern that the numbers could even lead to GE slashing its dividend as some analysts feared.
Investors should think long and hard about their investments in General Electric. The company may find it even more difficult to turn things around in the coming months as resources continue to dwindle. The company will now have to struggle not only to rebuild their revenue, but also their investors’ confidence.
To read Business Insider’s report on GE’s earnings, click here.
To read Bloomberg’s Brooke Sutherland’s article on the potential dividend cut at GE, click here.
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