He later accepted the position of chair at Athenahealth. The General Electric Company commemorated its th anniversary in But there was little to celebrate. In November , GE announced plans for a broad restructuring and halved its quarterly dividend from 24 cents to 12 cents a share. In December , the company cut dividends to as low as they could go, to 1 cent a share. In that same month in , GE laid off thousands of employees across all divisions in the country.
The company's stock fell by 3. On Oct. This was the latest in a series of measures that GE undertook in order to boost its financials. Market analysts threw Culp a bone on Dec. Culp made significant improvements to the firm and helped turn it around slightly.
He also sold off stakes and subsidiaries that were no longer core to the GE model. GE's stake in Baker Hughes, an oil field services company, was divested, and Culp sold off the transportation unit into Wabtec.
Both moves raised significant capital for GE. Despite doing an admirable job in turning GE around, Culp has been hit like everyone else from the financial disaster that the COVID pandemic has caused.
GE's aviation unit was specifically impacted; a unit that is crucial to the company's profitability. With travel having been ground to a halt during the pandemic, airplane companies weren't ordering new planes or plane parts. Things began to look better for GE in , though. Profit margins began recovering, and free cash flow became positive again. As of , GE consists of four segments: aviation, healthcare, power, and renewable energy.
Though struggling over the past few years, GE has shown signs of improvement through non-essential business sell-offs and a reduction in debt. It is a company doing business in over countries with nearly , employees worldwide. None of these factors should be taken lightly when looking at its prospects.
On the downside, the market impact from the COVID has thrown a wrench in the company's profitability and possibly its future. Silver Vix CMC Crypto 1, FTSE 7, Nikkei 29, Read full article. More content below. Bret Kenwell. In this article:. The General Electric GE logo on a building. Story continues. A daily chart of GE stock. Recommended Stories. Motley Fool. Yahoo Finance. Investor's Business Daily. Insider Monkey. CNW Group.
Author Bio Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials. When not arguing on Twitter or writing about the markets, Lou spends his free time out in nature, complaining online about the Baltimore Orioles or Watford FC, or listening to early s alt rock.
Follow louwhiteman. Key Points General Electric plans to split into three more-focused companies, breaking up the healthcare, aviation, and energy conglomerate. GE is following a trend of corporate splits, betting that each unit will perform better on its own than it can under a large corporate umbrella.
The split will not be complete until A GE9X Engine in action. Image source: General Electric. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Join Stock Advisor Discounted offers are only available to new members. As far as how GE is doing compared to EPS and revenue predictions, things look great for the former and lukewarm for the latter.
It has been beating EPS predictions by wide margins, and it has beat revenue predictions in two of the last four quarters. When it comes to accurate GE stock forecasts, this pattern is useful to consider. What stands out the most among its EPS predictions Q1 GE stock might have modest gains over the next 12 months. That may not be exciting for most investors, but its diverse business model and long history give the company the sort of stability that many will appreciate.
As with any stock, you have a couple of options:. This is just one of many stocks out there…. Bob Haegele is a personal finance writer who specializes in investing and planning for retirement.
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