We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is General Electric (GE) Stock Slumping Today?
Read MoreHide Full Article
Shares of General Electric (GE - Free Report) slumped more than 3.5% in early morning trading Monday after the company announced its plans to restate earnings for fiscal 2016 and 2017 to reflect a new accounting standard.
According to a recent regulatory filing, the updated accounting standard will result in a 16-cent cut to General Electric’s reported earnings per for share for 2017 and a cut of 12 cents a share for 2017. The changes reflect differences in how the industrial conglomerate will now consider long-term contracts.
Management will officially restate its prior results when it reports 2018 figures. GE’s shift to the new standard comes on the back of a Securities and Exchange Commission investigation of the company’s accounting for lengthy service contracts.
The updated earnings numbers and ongoing SEC investigation join a longer list of problems for GE, which has seen its stock price fall more than 50% over the past year. The once-dominant industrial behemoth is looking to shed as much as $20 billion worth of assets and also faces potential legal action over allegations that two of its financial units violated U.S. law related to subprime mortgages.
Shares of GE sunk to a five-year intraday-trading low of $13.95 on Monday morning. The stock is currently sporting a Zacks Rank #5 (Strong Sell), as well as an “F” grade for Growth in our Style Scores system.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Why Is General Electric (GE) Stock Slumping Today?
Shares of General Electric (GE - Free Report) slumped more than 3.5% in early morning trading Monday after the company announced its plans to restate earnings for fiscal 2016 and 2017 to reflect a new accounting standard.
According to a recent regulatory filing, the updated accounting standard will result in a 16-cent cut to General Electric’s reported earnings per for share for 2017 and a cut of 12 cents a share for 2017. The changes reflect differences in how the industrial conglomerate will now consider long-term contracts.
Management will officially restate its prior results when it reports 2018 figures. GE’s shift to the new standard comes on the back of a Securities and Exchange Commission investigation of the company’s accounting for lengthy service contracts.
The updated earnings numbers and ongoing SEC investigation join a longer list of problems for GE, which has seen its stock price fall more than 50% over the past year. The once-dominant industrial behemoth is looking to shed as much as $20 billion worth of assets and also faces potential legal action over allegations that two of its financial units violated U.S. law related to subprime mortgages.
Shares of GE sunk to a five-year intraday-trading low of $13.95 on Monday morning. The stock is currently sporting a Zacks Rank #5 (Strong Sell), as well as an “F” grade for Growth in our Style Scores system.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>