Shares of industrial giant General Electric (NYSE:GE) have plunged over the past year due to deteriorating performance in the company’s power business — historically its largest segment by revenue — and investor fears about hidden liabilities in the GE Capital financing business. GE slashed its dividend by 50% last fall, but some analysts have warned that a cash crunch could force it to abandon the dividend entirely.
The reality isn’t quite so bleak. Last Friday, General Electric silenced many of its critics with solid first-quarter results. While the company still faces earnings pressure from the power and GE Capital segments, the valuable aviation and healthcare segments are performing very well. Furthermore, GE’s turnaround plan appears to be on track.
Aviation continues to support profitability
General Electric reported adjusted earnings per share of $0.16 for the first quarter, comfortably beating the average analyst estimate of $0.11. Based on current accounting standards, EPS was $0.14 in the year-ago period, so GE’s Q1 result represented a year-over-year improvement.
Best Performing Stocks For 2018: Boardwalk Pipeline Partners L.P.(BWP)
- [By Tyler Crowe]
Investors have been waiting for years for Boardwalk Pipeline Partners (NYSE:BWP) to fix the issues of debt and profitability that forced management to cut its payout. The path to repair these issues has been agonizingly slow, however, as Boardwalk posted another quarter of results that don’t suggest a return to a higher payout anytime soon.
- [By Jim Robertson]
On Friday, our Under the Radar Moversnewsletter suggested mid cap natural gas pipeline stock Boardwalk Pipeline Partners, LP (NYSE: BWP) as a bullish/long trade:
Best Performing Stocks For 2018: Mayne Pharma Group Limited (MAYNF)
- [By SEEKINGALPHA.COM]
We believe that two main risks currently exist. First, a few days ago, U.S. Department of Justice filed charges in generic drug price-fixing probe. The U.S. Department of Justice accused two former generic pharmaceutical executives of colluding with other generic manufacturers to fix prices – the first criminal charges stemming from a two-year investigation. Companies in the congressional probe have since publicly disclosed that they have received subpoenas, including Mylan NV (NASDAQ:MYL), Allergan (NYSE:AGN), which later sold its generics business to Teva (NASDAQ:TEVA), Lannett (NYSEMKT:LCI), Impax Laboratories (NASDAQ:IPXL), Endo International (NASDAQ