General Electric Co. GE, -1.20% said Wednesday that its board of directors will recommend shareholders approve a 1-for-8 reverse stock split, given the industrial conglomerate’s “significant transformation” over the past several years. The split would effectively multiply GE’s stock price by eight, while reducing the number of shares outstanding to a number “more typical of companies with comparable market capitalization,” GE said. The company said the timing of the reverse split will take place, at the board’s discretion, before the one-year anniversary of its 2021 annual shareholder meeting scheduled for May 4. Separately, GE said it expects 2021 adjusted earnings per share of 15 cents to 25 cents, compared with the FactSet consensus of 25 cents. Revenue is expected to grow in the low-single-digit percentage range, while the current FactSet revenue consensus of $80.4 billion implies 1.0% growth, while free cash flow is expected to be $2.5 billion to $4.5 billion to surround the FactSet consensus of $3.6 billion. GE also confirmed a deal to combine its aircraft leasing business, GECAS, with AerCap Holdings N.V. AER, -2.66%. GE’s stock has rallied 58.2% over the past 12 months, while the S&P 500 SPX, +1.42% has gained 34.5%.
View Article Origin Here
