- EPS: 11 cents, expected by analysts surveyed by Thomson Reuters.
- Revenue: $27.45 billion expected by analysts surveyed by Thomson Reuters.
The embattled industrial conglomerate saw its shares drop to the lowest level since July 2009 as Wall Street and the media alike questioned the risks lurking within GE Capital’s portfolio. The stock has slid 21 percent since January, when GE first announced a review of its GE Capital insurance portfolio.
Then came the SEC investigation into GE’s accounting practices and the U.S. Justice Department investigation in connection with subprime mortgages.
“These outstanding legal matters or investigations amount to up to $10 billion in incremental liability in GE Capital,” Bank of America said in a note April 12, while noting that it sees this total charge as “the worst case scenario.”
But GE’s earning restatement last week held no nasty revelations, coming largely in line with what the company announced during its fourth-quarter call with investors, with no repercussions for the company’s expected 2018 earnings.
The industrial conglomerate is also looking at spinoffs for some of its subsidiaries, such as its GE Transportation business. Such spinoffs have “historically created outsized value,” Melius Research said in a note last month. CEO John Flannery has begun to make good on his promise in October that the company would sell $20 billion in assets, with GE most recently announcing plans for private equity firm Veritas Capital to acquire a GE health-care unit for $1.05 billion in cash.
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