General Electric Earnings Cheat Sheet: Another Quarter of Rising Profit

Falling revenue did not prevent S&P 500 (NYSE:SPY) component General Electric Company (NYSE:GE) from reporting a profit boost in the third quarter. 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 for the Third Quarter

Results: Net income for General Electric Company rose to $3.22 billion (22 cents per share) vs. $2.06 billion (18 cents per share) in the same quarter a year earlier. This marks a rise of 57% from the year earlier quarter.

Revenue: Remained flat at $35.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GE reported adjusted net income of 31 cents per share. By that measure, the company fell in line with the mean estimate of 31 cents per share. Analysts were expecting revenue of $34.86 billion.

Quoting Management: “We are pleased to deliver our sixth consecutive quarter of double-digit operating earnings growth in a volatile macro environment,” GE Chairman and CEO Jeff Immelt said. “We improved earnings, achieved solid double-digit infrastructure order growth, executed on our balanced capital allocation plan and maintained a strong balance sheet. We ended the quarter with a record high order backlog of $191 billion and we remain confident in our full-year 2011 operating framework.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the second quarter, net income rose 21.1% while the figure climbed 76.5% in the first quarter and 50.5% in the fourth quarter of the last fiscal year from the year earlier.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by 3 cents.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 40 cents per share to 39 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. In the past month, the average estimate for the fiscal year has fallen from $1.38 per share to $1.35 abs.

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).

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(Source: Xignite Financials)

 

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