- Shares of General Electric are down 4.26% at $US18.21 as selling continues following Monday’s release of the company’s turnaround plan.
- GE shares have fallen more than 10% since the plan was released.
Shares of General Electric are seeing follow-through selling on Tuesday, trading down 4.26% at $US18.21 a piece. The losses come after shares tumbled more than 7% on Monday in response to the company’s turn around plan.
GE announced it was slashing its dividend by 50% and implementing other cost-cutting measures to turn things around. Shares had slumped about 35% this year before Monday’s slide, propting Monday’s announcement. More than $US100 billion in market value has been wiped out this year.
In addition to its cost-cutting measures, GE forecast full year 2018 adjusted earnings of $US1 to $US1.107 a share, well below the $US1.18 that Wall Street was expecting. It also said it expects revenue growth of 0% to 3% in 2018 and that it will target 2% to 4% long-term organic revenue growth.
The plan has received a lukewarm reception on Wall Street with RBC downgrading GE shares following the plan’s release.
Get the latest General Electric stock price here.