Why GE Shares Are Tumbling

The video discusses a recent 60-page analyst presentation, highlighting a dividend cut to 12 cents per share, which initially spiked share prices. Analysts' expectations for earnings per share range from $1.00 to $1.07, with concerns about free cash flow. The company plans to divest $20 billion in assets, focusing on power, aviation, and healthcare sectors. Despite pricing pressures, aviation is expected to grow 7-10% in organic revenue, contributing significantly to operating income.

What was the initial market reaction to the dividend cut announcement?

• Share prices were unaffected

• Share prices spiked

• Share prices fell sharply

• Share prices remained stable

What was the range of adjusted earnings per share expected by the company?

• $2.00 to $2.50

• $1.50 to $1.75

• $1.00 to $1.07

• $0.50 to $0.75

What is one reason analysts believe the company's shares might be down?

• Increased marketing expenses

• Lower than expected free cash flow

• Rising production costs

• High dividend payouts

Which sector is expected to contribute the most to the company's operating income?

• Real Estate

• Healthcare

• Power

• Aviation

What percentage of organic revenue growth is expected from the aviation sector?

• 10 to 15%

• 7 to 10%

• 3 to 5%

• 5 to 7%