General Electric Co.’s stock plunged 3.7% in morning trade Monday, putting it on track to close at a 5 1/2-year low, after its presentation to investors. As part of GE’s pledge to become simpler, and given some urging by the Securities and Exchange Commission, the company changed how it changed how it refers to earnings-per-share that is comparable to analyst expectations to something investors (and reporters) are more accustomed. GE still said in its presentation to investors Monday it expected “industrial operating + vertical EPS” of $1.05 to $1.10, but also added an “adjusted EPS” outlook of $1.04 to $1.12, which compares with the FactSet consensus of $1.10. For 2018, GE only referred to its profit outlook as “adjusted EPS,” of $1.00 to $1.07, which was below the FactSet consensus of $1.15. In a comment letter sent to GE, the SEC requested some explanation of “industrial operating + verticals EPS.” The stock has tumbled 37.6% year to date, while the Dow Jones Industrial Average has climbed 18.3%.
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