GE Earnings

Many of our clients are either GE employees, GE retirees or have some other relation to GE.  For that reason – and because GE is one of the big old companies that define the bedrock of American industry – we would like to share the GE earnings announcement.  The comments are taken from “Seeking Alpha.”

On October 17, General Electric (NYSE:GE) reported third quarter operating earnings of $0.38/share, up $0.02 or 6% from the prior year, beating consensus estimates by $0.01/share. Revenues increased 1% to $36.2 billion, with non-GE Capital revenues up 3%. Industrial profits increased 9%, to $4.3 billion in the quarter with margins increasing by 90 basis points. Backlog of equipment and services also grew 9%, to $250 billion. The Company confirmed the Synchrony Financial (NYSE:SYF) split-off would be completed in late 2015. The sale of the Appliance division to Electrolux is expected to generate an after-tax gain of $0.05-$0.07 per share. GE disclosed the Alstom acquisition, targeted to close in 2015, is expected add $0.06-$0.09 per share to earnings in 2016, potentially adding about 3% to current 2016 forecasts (consensus of $1.91/share). The Company also reiterated its goal of having 75% of its earnings from industrial businesses by 2016.

This article only reflects the author’s opinion. It is not designed, and should not be used as the basis of an investor’s buy or sell decision. Investors should always conduct their own due diligence and make their own buy and sell decisions.

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