- Shares of General Electric erased some of its gains in pre-market trading on Wednesday after the company revealed it was being investigated by the Securities and Exchange Commission in its earnings call.
- The company reported fourth-quarter earnings on Wednesday before the bell, posting profits that fell short of Wall Street’s expectations.
- The company plans to shed some of its businesses in order to focus on power, aviation, and healthcare equipment.
- View GE’s stock price move in real-time here.
Shares of General Electric dipped in pre-market trading on Wednesday after the company said its insurance reserves were being investigated by the Securities and Exchange Commission in an earnings conference call with investors, according to CNBC.
The company said it will fully cooperate with the investigation. The company recently took a $US6.2 billion hit on its insurance business after a review of GE Capital’s portfolio.
The company reported fourth-quarter earnings that fell short of analysts’ expectations. It reported a $US10 billion operating loss due to the insurance business loss and taxes.
The conglomerate reported adjusted earnings of $US2.33 billion, or $US0.27 a share. Wall Street expected the company to earn $US0.29 per share.
Revenue for the quarter fell $US31.40 billion, or 5.1%, from the $US33.09 billion in the same period a year ago. Analysts expected the company to earn $US34.06 billion.
Investors are expecting GE to shed some of its businesses, including its lighting, locomotives, and oil and gas units. GE said that it will focus instead on power, aviation and healthcare equipment.
In one piece of good news, GE said it expects an adjusted earnings per share between $US1.00 and $US1.07 in 2018, an upbeat outlook for CEO John Flannery, who joined the company in August 2017.
GE’s stock fell 0.61% to $US16.79 per share, and was down 6.06% for the year.