GE stock was on a wild ride Tuesday after releasing its earnings report for the third quarter of 2018 and making other announcements.
Starting off with the earnings report, General Electric (NYSE:GE) reported earnings per share of 14 cents in the most recent earnings. The company’s earnings per share from the same time last year was 21 cents. This is bad news for GE stock as Wall Street was looking for earnings per share of 20 cents during the quarter.
Net loss reported by GE for the third quarter of the year came in at $22.77 billion. This is a major drop from the company’s net income of $1.26 billion reported in the third quarter of the previous year.
General Electric’s earnings report for the third quarter of 2018 came in at $29.57 billion. This is a decrease from the company’s revenue of $30.66 billion reported in the same period of the year prior. It was also a blow to GE stock by failing to reach analysts’ revenue estimate of $29.92 billion for the period.
It wasn’t just the poor earnings report that was dragging GE stock down today. The company also announced that it is lowering its quarterly dividend. The company is dropping the quarterly dividend from 12 cents per share to just a single penny per share. This will start with the Board’s next dividend announcement, which should come in December.
The final bit of bad news for GE stock today has to do with the U.S. Securities and Exchange Commission (SEC). The company notes that it is currently facing a probe from the SEC. This has to do with how the company handles its accounting.
GE stock was down when the markets opened on Tuesday, got a brief surge in the positives, and is now down 5% during the morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.