General Electric shares fall the most in 19 weeks on Friday, conglomerate’s net income increases, but total revenue shrinks

On January 20th the DJIA-featured General Electric Company (GE) reported a 35.4% increase in its fourth-quarter net income compared to the same period a year earlier, supported by a strong performance of its power and renewable energy divisions. However, the conglomerates total revenue for the period was reported to have shrunk 2.36%.

General Electric shares registered their largest daily slump since September 9th on Friday, which also marked the sixth consecutive session of losses. The stock went down 2.18% ($0.68) to $30.53, after touching a daily low at $30.30, or a level not seen since November 15th ($30.24). In the week ended on January 22nd the shares of the industrial giant lost 2.65% of their market value compared to a week ago, which marked a second consecutive period of decline and also the worst performance since the week ended on November 6th. The stock has extended its drop to 3.39% so far during the current month, following a 2.73% surge in December. The latter has been a second straight month of gains. For the entire 2016, General Electric shares gained 1.44%.

Net income from continuing operations attributable to General Electric shareholders grew to $3.48 billion (39 cents per share) during the final quarter of 2016 from $2.57 billion (26 cents per share) in the last three months of 2015.

The companys earnings per share, excluding special items, dropped 2% to 46 cents during Q4, in line with the median forecast by analysts, according to Thomson Reuters I/B/E/S.

On the other hand, GEs total revenue dropped to $33.1 billion during the fourth quarter of 2016 from $33.9 billion during the same period a year earlier. The market consensus had pointed to a lesser drop – to $33.6 billion.

Sales in GEs power plant business grew 20% to $8.5 billion during the fourth quarter of 2016 from a year ago, while sales in its oil and gas division slumped 22% to $3.4 billion. In addition, net income from oil and gas operations shrank 43% to $411 million during Q4.

In December, the conglomerate projected that its revenue for 2017 would increase at a rate between 3% and 5%, excluding acquisitions. This forecast was affirmed by the company on Friday last week.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:

R1 – $30.59
R2 – $30.64
R3 (Range Resistance – Sell) – $30.70
R4 (Long Breakout) – $30.86
R5 (Breakout Target 1) – $31.05
R6 (Breakout Target 2) – $31.13

S1 – $30.48
S2 – $30.42
S3 (Range Support – Buy) – $30.37
S4 (Short Breakout) – $30.20
S5 (Breakout Target 1) – $30.01
S6 (Breakout Target 2) – $29.93

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $30.75
R1 – $31.21
R2 – $31.88
R3 – $32.34
R4 – $32.79

S1 – $30.08
S2 – $29.62
S3 – $28.95
S4 – $28.27