General Electric Co. Earnings Cheat Sheet: Powering Ahead
Falling revenue did not prevent S&P 500 (NYSE:SPY) component General Electric Company (NYSE:GE) from reporting a profit boost in the second quarter. General Electric Co. is an advanced technology, services and finance company that provides services ranging from aircraft engines to business and consumer financing.
General Electric Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for General Electric Company rose to $3.84 billion (34 cents per share) vs. $3.11 billion (28 cents per share) in the same quarter a year earlier. This marks a rise of 23.4% from the year earlier quarter.
Revenue: Fell 4.9% to $35.6 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: GE beat the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $34.72 billion.
Quoting Management: “GE Capital’s portfolio transformation is ahead of schedule. Consumer and Commercial Lending and Leasing (CLL) led with earnings growth of 57% and more than 100%, respectively. We continue to see strong demand for credit with CLL new volume originations at $10.8 billion for the quarter, up 33% from prior year.” “With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment,” GE Chairman and CEO Jeff Immelt said. “We posted solid overall operating earnings growth of 18%, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas. GE’s backlog grew to a record high of $189 billion. Total infrastructure orders were up 24%, reflecting robust strength in equipment orders, up 33%, and service orders up 16%.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 76.5% and in the fourth quarter of the last fiscal year, the figure rose 50.5%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.
Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 5% to $38.45 billion in the first quarter from the year earlier.
Competitors to Watch: Siemens AG (NYSE:SI), 3M Company (NYSE:MMM), Hitachi, Ltd. (NYSE:HIT), United Technologies Corp. (NYSE:UTX), Koninklijke Philips Electronics NV (NYSE:PHG), Honeywell Intl. Inc. (NYSE:HON), Danaher Corporation (NYSE:DHR), Textron Inc. (NYSE:TXT), OSI Systems, Inc. (NASDAQ:OSIS), and Bio-Rad Laboratories, Inc. (NYSE:BIO).
(Source: Xignite Financials)