General Electric Underperforms
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With businesses in a multitude of sectors, such as health care, finance, energy, consumer electronics, industry and media, many consider General Electric to be a barometer for the health of the U.S. economy.
GE has typically been a model of consistency, rarely missing - or beating - estimates. Only once since 2006 has GE failed to deliver earnings that exactly met First Call’s forecast. That was in second quarter of 2007, when it beat the earnings per share forecast by a penny.
Thus, investors were surprised when they missed first-quarter earnings, deflating hopes that the conglomerate could rise above a continued economic slowdown.
Even with strong presence in overseas overseas and a 22% year-over-year gain in global revenue, they were not immune to the U.S. credit crisis.
GE lowered their full-year earnings guidance, and its second-quarter forecast fell short of expectations. GE reported lower net income compared to the first quarter of 2007. Earnings are at 44 cents per share, down from 48 cents per share a year earlier and well below 51-cent-a-share as projected by analysts.
Guess no one is safe from the financial crisis that seems to be spreading like wildfire. :/
Comment by Safety — November 17, 2008 @ 1:57 pm