General Electric Companys (GE) third-quarter earnings, reported on Friday, fell well short of market consensus, sending its shares down by more than 5% at the start of the trading session. GE also cut its full-year profit forecast.
General Electric shares closed higher for a second consecutive trading session on Friday. The stock initially gapped down to an intraday low of $22.10 at the open, but recovered during the later phase of the trading session. It went up 1.06% ($0.25) to close at $23.83.
In the week ended on October 22nd the shares of the industrial conglomerate added 3.70% to their market value compared to a week ago, which marked the best performance since the week ended on September 24th.
The stock has pared its loss to 1.45% so far during the current month, following a 1.51% slump in September. The latter has been a seventh consecutive month of losses.
For the entire past year, General Electric shares gained 1.44%. However, the stock has retreated 24.59% so far in 2017.
GEs adjusted earnings were reported at $0.29 per share during the third quarter ended on September 30th. In comparison, analysts on average had expected earnings of $0.49 per share.
According to the industrial conglomerate, weak earnings in its power and oil & gas businesses, goodwill impairment as well as higher-than-anticipated restructuring costs dragged down overall earnings during the quarter. Profit at General Electrics power business was reported to have slumped 51% during the quarter ended on September 30th.
On the other hand, total revenue went up 14.4% to $33.47 billion during the latest quarter from a year earlier, supported by GEs purchase of oilfield services provider Baker Hughes.
Meanwhile, the conglomerates industrial cash flow from operating activities, excluding special items, shrank to $1.74 billion during the third quarter from $2.90 billion during the same period a year ago, due to “lower power volume, resulting in lower earnings and higher inventory”.
The company has also revised down its full-year earnings forecast to a range of $1.05-$1.10 per share. It had expected earnings per share within a range of $1.60-$1.70 previously.
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $27.50, with a high estimate of $35.00 and a low estimate of $20.00. The median estimate is a 15.40% surge compared to the closing price of $23.83 on October 20th.
The same media also reported that 9 out of 20 surveyed investment analysts had rated General Electric’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:
R1 – $23.99
R2 – $24.15
R3 (Range Resistance – Sell) – $24.31
R4 (Long Breakout) – $24.79
R5 (Breakout Target 1) – $25.35
R6 (Breakout Target 2) – $25.71
S1 – $23.67
S2 – $23.51
S3 (Range Support – Buy) – $23.35
S4 (Short Breakout) – $22.87
S5 (Breakout Target 1) – $22.31
S6 (Breakout Target 2) – $21.95
By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:
Central Pivot Point – $23.26
R1 – $24.41
R2 – $25.00
R3 – $26.15
R4 – $27.31
S1 – $22.67
S2 – $21.52
S3 – $20.93
S4 – $20.35
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