GE earnings are a disgrace but new CEO will turn things around

Investing


General Electric‘s quarterly earnings results were a “disgrace,” but new CEO John Flannery will turn things around, CNBC’s Jim Cramer said Friday.

Shares of GE fell more than 8 percent at one point in Friday’s premarket, its worst drop in more than eight years, after it reported a huge third-quarter miss. It was down about 3 percent in the first 30 minutes or regular trading.

In his first earnings report as CEO, Flannery called the quarter “very challenging.” “While a majority of our business had solid earnings performance, this was offset by a decline in Power [segment] performance in a difficult market,” he said.

Though disappointed, Cramer said on “Squawk on the Street” that the earnings report is a reflection of the company’s previous chief executive, Jeff Immelt.

“This is not a report card on Flannery,” said Cramer, who personally owns GE stock, as does his charitable trust. “This is basically a statement on all the things they’ve done wrong.”

The company cut its forecast for the year. It lowered estimates for its 2017 adjusted earnings per share to a range of $1.05-$1.10, from $1.60-$1.70.

“It’s a disgrace, what happened here,” Cramer said. “This was a great American company. And Mr. Flannery is going to return it to a great American company.”

“The most important thing is that this is the last of the Immelt numbers,” the host of CNBC’s “Mad Money” said.

Immelt did not immediately respond to a CNBC request for comment.



Source link

Products You May Like

Articles You May Like

General Motors (GM) earnings Q1 2021 crush expectations
Roku pops 11% after reporting highest revenue growth rate since IPO
Elizabeth Holmes’ lavish lifestyle looms over Theranos fraud case
Who is Greg Abel, Warren Buffett’s successor at Berkshire Hathaway?
The Covid recovery still has a K shape

Leave a Reply

Your email address will not be published.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