General Electric Co. (NYSE: GE) today gave disappointing financial guidance, ratcheting up pressure on CEO Jeffrey Immelt to boost its share price which hasn't done squat this year.The conglomerate expects earnings per share to rise "at least" 10% next year to $2.42, which Bloomberg News says trails the lowest analyst estimate. To Immelt's credit, he pulled no punches.
"'Im not going to put a happy face on the slowing U.S. consumer,'' Bloomberg News quotes him as saying. ``Our businesses that touch housing in the U.S. are going to be challenged.''
Investors are growing impatient with Immelt's promises of better times ahead. Yes, the company reaffirmed its fourth quarter EPS guidance of 67 cents to 69 cents and $2.19 to $2.21 for the year.
"We want to give our investors safe and reliable earnings growth as the economy evolves," Immelt said in the press release. But Wall Street expects better things out of GE. The company is going to find it more and more difficult to resist pressure to divest itself of NBC Universal and make other big changes.
The time for talk is over.
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Reader Comments (Page 1 of 1)
12-11-2007 @ 5:57PM
Mike Rath said...
Immelt and GE have been disappointing investors for a very long time---
This guy needs a very long and permanent vacation...
12-12-2007 @ 9:30AM
Tattletale said...
This person speaks truth......more GE BS
12-12-2007 @ 1:59PM
Phil said...
My little birdie informs me that GE Money is attempting to sell off its RCF Division which I assume is to provide them with more money in the bank as if they dont have enough already!
12-13-2007 @ 6:16PM
Phil said...
Mr. Immelt has stated recently that GE is looking into either a partnership ando/or buyout of its GE Money RCF (Retail Consumer Finance) Division to improve GE's stock performance by increasing its bottom line. This will impact the lives of over 20,000 American families. Let this greed stop people. Standup for what is right in America and do not let this happen just so you can see a little more $$ in your dividends. Instead of improving the bottom lilne on the backs of its employees, perhaps Mr. Immelt should look inside himself for improvement in his own management skills.