GE share price is on the losing as investors were left unimpressed by negative but improved earnings. General Electric reported earnings that slightly beat expectations, but did not stop the stock from posting a 4.72% loss as at the time of writing. GE share price is trading at 6.57% per share after the company posted a loss per share of 15 cents (versus the market expectation of 10 cents), while revenues hit $17.7 billion, slightly trumping a forecast of $17.12 billion.
Strong sales in the renewable energy and conventional power divisions boosted revenues, but even revenues from these streams fell by 3% and 11% respectively. Expectedly, revenues from its aviation division slumped to $4.38 billion, a 44% drop. GE’s loss was better than the company had forecast in its previous earnings guidance. However, the company’s earnings performance took a hit from the coronavirus pandemic, as affirmed by CEO Larry Pulp.
GE had seen its shares drop almost 40%, as its aviation division was not insulated from the impact the aviation industry has taken from the coronavirus-induced shutdown of that sector. The company is also trying to cut costs in a desperate bid to salvage a year which is easily one to forget for the company’s investors.
Technical Outlook for GE
The stock looks set to form a bearish engulfing setup, even as the price has effectively been range trading for a while now. The price candle is presently testing the floor of the range at 6.49. A breakdown of this floor opens the pathway towards 6.04, with the 15 May 2020 low at 5.49 serving as the next available support if further declines are seen.
On the flip side, a bounce from the 6.49 support could allow GE share price a reprieve, targeting 7.20 in the first instance. A break of this level allows further recovery to 7.54. A potential pitstop exists at 8.17, if bulls decide to drive GE share price towards the 8.59 mark.
GE Share Price Chart (daily)