What GE's Earnings Miss Means to Investors
General Electric (NYSE: GE) recently told investors it would materially miss its first-quarter earnings guidance of adjusted EPS of $0.10, and withdrew its guidance for 2020. The news is disappointing, but not unexpected. The deeper question is, what does this mean to the investment proposition for the stock?
Ultimately, the answer to the question lies in how you decide to value the stock. In general, there are two polemic ways to do it:
The reality is that most people will take a view somewhere in between these two positions, but for argument's sake let's look at what the earnings update means for both approaches.
Source Fool.com
