General Electric’s Stock Slides 4% On Soft Guidance

The stock of General Electric (GE) is down 4% after the company issued soft guidance for the coming year.

The Boston-based industrial conglomerate managed to beat Wall Street forecasts for its fourth quarter 2023 financial results.

General Electric reported earnings per share (EPS) of $1.03 U.S., which was higher than the $0.91 U.S. consensus estimate of analysts who track the company’s progress.

Revenue in the fourth quarter of last year rose 15% to $19.42 billion U.S., beating forecasts of $17.67 billion U.S.

The company said the solid Q4 print was due to strong demand for parts and services at its jet engine business.

However, General Electric’s forward guidance disappointed. The company said it expects EPS of $0.60 U.S. to $0.65 U.S. for the current first quarter of 2024.

The Q1 guidance fell short of Wall Street forecasts of $0.72 U.S. per share.

The soft guidance comes as General Electric continues to break itself into separate publicly traded businesses.

The company completed the separation of its healthcare business last year and plans to spinoff its energy business into a separate company in April of this year.

Before today (Jan. 23), General Electric’s stock had increased 65% over the last 12 months to trade at $131.23 U.S. per share.

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