What Siemens Earnings Mean to General Electric Company Investors
It's been a difficult year for General Electric Company (NYSE: GE) investors as they have watched their stock decline 22% year to date while the S&P 500 is up by more than 8%. The decline is largely due to the company lowering expectations to the bottom end of its guidance ranges, amid disappointing performance from its oil and gas and power segments. While the oil and gas issue looks to be a case of expectations being set too high, the power segment's issues could be more troubling in the long term. In order to get more color on what's going on in GE's power segment, let's take a look at what its key rival Siemens AG (NASDAQOTH: SIEGY) said in its recent results.
GE's second-quarter earnings report makes it clear that there are two issues:
Both issues were specifically addressed on Siemens' earnings call.
Source: Fool.com
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