GE: Q2 Results Poised to Impress — But $GE’s 2017 Power Missteps Still Resonate
Court: S.D. New York
Case: 1:17-cv-08457
GE Aerospace 
GE is preparing to release its second-quarter earnings, with Wall Street bracing for a possible 5% price swing. Traders are watching closely, as the stock has already surged nearly 60% in 2025. But despite bullish expectations and a string of beats, a major investor settlement over its troubled 2017 guidance continues to weigh on GE's legacy.
📈 Anticipation Builds Ahead of GE Aerospace's Q2 Earnings
- Expected Q2 Revenue: $10.27B (up 13% YoY)
- Estimated EPS: $1.43 (up ~20%)
- Options Market Outlook: Predicting a move to ~$266 by Friday (+/-5%)
- Past Earnings Reactions:Rose >6% on last two earnings daysDropped 9% and 5.6% on two prior reports
- Stock Performance YTD: +60%, boosted by strong post-split identity
- Analyst Sentiment: All 10 tracked by Visible Alpha rate GE a “Buy”
- Average Price Target: ~$270, slightly above Wednesday’s close
🧾 But GE's 2017 Guidance Scandal Still Lingers
GE Aerospace recently reached a legal settlement tied to its troubled 2017 guidance. Investors alleged the company misrepresented financial stability and failed to disclose deep cash flow risks in its Power segment.
📆 Timeline Overview
- Oct 20, 2017 – GE slashed cash flow guidance, shares dropped 7%
- Nov 13, 2017 – Announced a 50% dividend cut; shares plunged 12.5%
- Jan 16, 2018 – Disclosed a $6.2B insurance loss; stock fell another 13%
- Nov 1, 2019 – Investors filed suit alleging misrepresentation
- Jan 2025 – GE settled with shareholders, resolving outstanding claims
💼 Allegations Include
- Overstated 2017 financial guidance
- Failure to disclose massive insurance liabilities
- Masking deteriorating cash flow in Power segment
- Misleading dividend sustainability
💰 Investor Update
- GE agreed to a financial settlement in early 2025
- Settlement covers losses tied to the 2017–2018 collapse
- Court-supervised payout pending formal claims process
👉 You can check more information about it and file for a payout HERE.
As GE Aerospace flies high on strong operational performance and investor optimism, it continues to reckon with the fallout from past leadership’s missteps — a reminder that transparency, like engineering, must always meet high standards.