, Columnist
GE's Earnings Dumpster Fire Puts Dividend at Risk
Money is tight, operations are disappointing and new CEO John Flannery's job just got harder.
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GE's third-quarter earnings report had an earthquake's worth of bad news for investors. Beware the tsunami aftershocks, especially when it comes to the dividend.
The industrial giant missed analysts' quarterly EPS expectations by a mile -- and that's after those forecasts had been heavily curbed. The shortfall forced General Electric Co. to cut its 2017 guidance to $1.05 to $1.10, laughably distant from an initial call for $1.60 to $1.70 that it reaffirmed as recently as July. That explains why CFO Jeff Bornstein is on his way out mere months after new CEO John Flannery billed him as a partner in his turnaround efforts. You just can't defend that.