GE Shares On track for Its Lowest Close Since June 2012 After Dividend Cut and Downbeat Outlook
Nov, 13th 17:46
Shares of General Electric Co. reversed lower to plunge toward a five-and-a-half low on Monday after the industrial conglomerate posted a downbeat profit outlook for next year and announced to cut its quarterly dividend by half.
GE’s shares lost more than 6.6 percent in very active morning North American trading session on Monday after having rallied as much as 2.4 percent in premarket trade. The company said that it would cut its dividend by half to 12 cents a share in order to preserve cash for a restructuring under new Chief Executive John Flannery.
Besides, GE also lowered 2018 adjusted earnings per share to a range from $1.00 to $1.07 from $1.69 as of the end of September due to said the Securities and Exchange Commission’s new revenue recognition rules. The forecast is also below analysts’ consensus of $1.15.
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