GE shares at 9-year low amid latest power woes




Shares of GE -- which are now at a nine-year low -- have fallen more than 10 percent between September 19 and 25 2018, following news of a glitch in new power-plant turbine technology that temporarily shut two electricity plants in Texas
Shares of GE -- which are now at a nine-year low -- have fallen more than 10 percent between September 19 and 25 2018, following news of a glitch in new power-plant turbine technology that temporarily shut two electricity plants in Texas  

New York (AFP) - Shares of General Electric fell again on Tuesday, adding to losses following the company's latest woes in its slumping power division.

The industrial conglomerate, which was bumped from the prestigious Dow index in June, fell 2.5 percent in late-morning trading to $11.45.

Shares of GE -- which are now at a nine-year low -- have fallen more than 10 percent since last Wednesday, following news of a glitch in new power-plant turbine technology that temporarily shut two electricity plants in Texas.

GE Power President and Chief Executive Russell Stokes described the problem as an "oxidation issue that affects the lifespan of a single blade component," saying on LinkedIn that the development was "frustrating" but that the company had identified "a fix."

But a note last week from JPMorgan Chase analyst Stephen Tusa said the problem was potentially more serious and raised worries that there were "more shoes to drop" at the 126-year-old company. Tusa lowered his share price target on the company to $10 from $11.

Buffeted by weak conditions in its power and oil and gas businesses, GE has cut costs and announced plans to exit the healthcare and oil services business. The changes have been overseen by Chief Executive John Flannery, who took over in June 2017.

Morningstar analyst Joshua Aguilar said the company's travails in its power business would take time to turn around due to overcapacity, in part because of increased use of renewable energy.

"This is not a quick fix," he said.

COMMENTS

More Related News

Will GE (GE) Beat Estimates Again in Its Next Earnings Report?
Will GE (GE) Beat Estimates Again in Its Next Earnings Report?

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider General Electric (GE). This industrial conglomerate has an established record of topping earnings estimates, especially when looking at the previous two reports. For the previous quarter, the consensus estimate was $0.11 per share, while it actually produced $0.16 per share, a surprise of 45.45%.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.