GE's Shocking Tumble: Analysts React

Wall Street Journal | http://blogs.wsj.com/marketbeat/2008/04/11/analysts-react-ges-miss/?mod=WSJBlog | April 11, 2008 12:09 PM

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Wall Street analysts, at least in their research, tend to display a measured tone, but General Electric Co.'s surprising earnings miss has brought out a range of emotions in the researchers following the industrial behemoth.

Already, two firms have downgraded shares after GE reported earnings of 44 cents a share, seven cents short of the 51-cent consensus as reported by Thomson Financial. After all, in the previous eight quarters, the company met estimates to the penny seven of eight times, with the one deviation being a one-cent bettering of consensus.

Here are a number of reactions to the news:
- "We expect the magnitude and timing of GE's miss and sharply lower 2008 guidance to shake investor confidence and leave GE range-bound at best over the near-term." -Deane Dray, Goldman Sachs, who downgraded shares to neutral and lowered her price target to $34

- "We acknowledge that downgrading the shares after the fact is far from ideal. However, the magnitude of the miss coupled with the disappointing results across the board within the manufacturing biz make it tough to defend here if we're intellectually honest. We're not sure why the company didn't preannounce the miss prior to today given the magnitude of the shortfall."-Nicole Parent of Credit Suisse, who lowered shares to neutral

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- FatherWolf See Profile I'm a Fan of FatherWolf

But don't worry. Our president assures us that when Americans get their $300 or $600 or whatever, they'll make it all better for GE and the rest of the economy. Just you wait and see. A few months after people get the money, we'll see if the economy is still tanking and we need to to something else.

Favorite Flag as abusive Posted 08:07 PM on 04/11/2008

- KCFreedom See Profile I'm a Fan of KCFreedom

Aww, poow wittle GE. They're finally getting kicked in their own butt in a roundabout way.

If you screw over the little people of your own country enough, by subjugating their government, keeping their pay way less than real inflation, suppress their employment agility/mobility by using tools like PeopleSoft against them, and shipping their jobs overseas en masse, then eventually IT HITS YOUR OWN BOTTOM LINE.

Favorite Flag as abusive Posted 06:40 PM on 04/11/2008

- FrankensteinBlack See Profile I'm a Fan of FrankensteinBlack

Well GE there is a way forward and out of this conundrum, one that will last well past 1,000 years. Run don"t walk to GREEN! More solar, wind, geo, bio, hydro, R&D, patents, products, etc. It"s obviously the future wave. Now don"t just sit there like a phucking Dinosaur in the middle of a blizzard (shaking in the shadow of the Oiligarchs). MOVE YOUR AZZ!!

Favorite Flag as abusive Posted 01:52 PM on 04/11/2008

- WIpatriot See Profile I'm a Fan of WIpatriot

Check out GE's ecomagination program.

Favorite Flag as abusive Posted 07:16 PM on 04/13/2008

- FogBelter See Profile I'm a Fan of FogBelter

TIme for the Bush Administration to ride to the rescue. Maybe they can help GE to get a contract to build Nuclear Reactors in Iran that we can blow up later.

How's THAT for a business model?

Favorite Flag as abusive Posted 01:24 PM on 04/11/2008

- WIpatriot See Profile I'm a Fan of WIpatriot

Pretty good, FB, but China and India are on the list first.

Favorite Flag as abusive Posted 07:15 PM on 04/13/2008

- FreedomCorpse See Profile I'm a Fan of FreedomCorpse

Bring lots of good jobs back to the US, it will change for the better and pay the slave labor forces around the world excellent wages instead of nominally above subsistence wages.

Favorite Flag as abusive Posted 12:42 PM on 04/11/2008