Multinational manufacturing conglomerate General Electric
) on Friday posted a better-than-expected second quarter profit,
but its revenue fell short of analysts' view, sending its shares
lower in premarket trading.
The Fairfield, CT-based company reported a second quarter profit
of $3.03 billion, or 30 cents per share, compared with $2.61
billion, or 27 cents per share, in the year-ago period.
Revenue fell 4.3% from last year, to $37.44 billion.
On average, Wall Street analysts expected a smaller profit of 27
cents per share, albeit on higher revenue of $38.37.
CEO Immelt noted in a statement that "GE's economic environment
continues to improve." Investors weren't as optimistic on the
stock, however - GE shares fell 19 cents, or -1.3%, in premarket
The Bottom Line
We recently removed shares of GE from our recommended list back on
June 8, when the stock was trading at $15.41. The company has a
2.62% dividend yield, based on Friday's closing stock price of
$15.25. The stock has technical support in the $13 price area. If
the shares can firm up, we see overhead resistance around the
$16-$17 price levels. We would remain on the sidelines for now.
General Electric Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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