GE Earnings: Profits Grow, But Not Enough to Please Investors

S&P 500 (NYSE:SPY) component General Electric Company (NYSE:GE) reported higher profit for the third quarter as revenue showed growth. General Electric is an advanced technology, services and finance company that provides services ranging from aircraft engines to business and consumer financing.

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General Electric Company Earnings Cheat Sheet

Results: Net income for the diversified operations rose to $3.49 billion (33 cents per share) vs. $3.22 billion (22 cents per share) in the same quarter a year earlier. This marks a rise of 8.3% from the year-earlier quarter.

Revenue: Rose 2.8 percent to $36.35 billion from $35.36 billion.

Actual vs. Wall St. Expectations: General Electric Company reported adjusted net income of 36 cents per share. By that measure, the company fell short of mean estimate of 37 cents per share. It fell short of the average revenue estimate of $36.8 billion.

Quoting Management: “The overall environment remains challenging, but GE continues to execute on our growth strategy,” said GE Chairman and CEO Jeff Immelt. “GE’s Industrial segments delivered another quarter of strong organic revenue growth, and we ended the quarter with a robust backlog. As expected, our margins increased 70bps over the prior year period, with margin expansion in all five Industrial segments.”

Key Stats:

Last quarter’s profit increase ends a three-quarter streak of profit decreases. In the second quarter, net income fell 17.5% from the year earlier, while the figure dropped 11.6% in the first quarter and 17.8% in the fourth quarter of the last fiscal year.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by one cent.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 47 cents per share, up from 46 cents ninety days ago. Over the past sixty days, the average estimate for the fiscal year has reached $1.55 per share, a decline from $1.56.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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