General Electric Company (GE) Edges Out EPS Expectations

General Electric Company (GE) Edges Out EPS Expectations
By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia Commons

General Electric Company (NYSE:GE) released the results from its most recently completed quarter before opening bell this morning, posting net revenue of $34.2 billion and operating earnings of 33 cents per share. That’s compared with $34.9 billion in net revenues and operating earnings of 39 cents per share in the same quarter a year ago.  Analysts had been expecting GE to report 32 cents per share in earnings on revenue of $34.45 billion for the quarter. GAAP earnings were 29 cents per share, including impacts from restructuring and NBCUniversal and other charges.

“We had strong results in the first quarter in most of our markets, including Power & Water, Aviation, Oil & Gas, and GE Capital,” said General Electric Company (NYSE:GE) Chairman and CEO Jeff Immelt in a statement. “The environment was generally positive, and we executed on our operational priorities with strong organic growth, margin enhancement, and solid cash generation.”

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Breaking down GE’s results

According to this morning’s release, General Electric Company (NYSE:GE)’s industrial profits increased 12% to $3.3 billion. Segment margins rose 50 basis points year over year, while revenues grew 8%. Infrastructure orders were flat year over year at $23.7 billion. The company did receive a number of key orders during the quarter under this segment. Those include an order from Transnet for GE locomotives and Air France-KLM’s order for GEnx engines, which will be used in Boeing 787 Dreamliner planes.

Earnings from GE Capital were flat at $374 billion in ENI at the end of the quarter. General Electric Capital Corporation had an estimated Tier 1 Common ratio under Basel 1 of 11.4%, a 32 basis point increase. General Electric Company (NYSE:GE) also filed for an initial public offering to spin off its North American Retail Finance business as it prepares to gradually get out of the financial business.

GE speeds up simplification efforts

General Electric Company (NYSE:GE) also said it moved forward in simplifying its divisions. The company is on track to trim $1 billion or more this year. It noted that industrial structural costs fell $245 million year over year.

The company reported $1.7 billion in cash from operating activities and ended the quarter with $87 billion in consolidated cash and cash equivalents. General Electric Company (NYSE:GE) returned $3.4 billion to shareholders during the first three months of the year, including $1.2 billion through share repurchases and $2.2 billion in dividends. The company also revealed $2 billion in acquisitions in oil and gas and healthcare during the quarter.

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