Finance
General Electric dividend cut, earnings miss, power business reorg
AP Images / Richard Drew
General Electric on Tuesday announced third-quarter results that fell short of Wall Street estimates and said it was cutting its dividend and restructuring its struggling power business. Shares were up less than 1% following the news.
The globally diversified technology and financial-services company reported adjusted earnings of $0.14 a share on revenue of $29.57 billion, missing the $0.20 and $30.25 billion that analysts surveyed by Bloomberg were expecting.
GE said it would slash its dividend to $0.01 a share — from $0.12 — saving it approximately $3.9 billion of cash a year. The company will also take a pretax $22 billion noncash goodwill impairment charge related to GE Power.
“After my first few weeks on the job, it’s clear to me that GE is a fundamentally strong company with a talented team and great technology,” CEO Larry Culp said in the earnings release.
“However, our results are far from our full potential. We will heighten our sense of urgency and increase accountability across the organization to deliver better results.”
It has been a rough year for GE stockholders, who have seen shares plunge more than 35%. After a gain of more than 20% following the naming of Culp as CEO, the stock has proceeded to make new lows. It hit less than $11 a share on Monday, making for its lowest print since the depths of the financial crisis.
Get the latest General Electric stock price here.
-
Business6 days ago
Langdock raises $3M with General Catalyst to help businesses avoid vendor lock-in with LLMs
-
Entertainment5 days ago
What Robert Durst did: Everything to know ahead of ‘The Jinx: Part 2’
-
Entertainment5 days ago
This nova is on the verge of exploding. You could see it any day now.
-
Business5 days ago
India’s election overshadowed by the rise of online misinformation
-
Business4 days ago
This camera trades pictures for AI poetry
-
Business5 days ago
CesiumAstro claims former exec spilled trade secrets to upstart competitor AnySignal
-
Business7 days ago
Screen Skinz raises $1.5 million seed to create custom screen protectors
-
Entertainment7 days ago
Dating culture has become selfish. How do we fix it?