General Electric Company (GE) Misses Earnings Estimates

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General Electric Company (GE) Misses Earnings Estimates
By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], <a href="https://commons.wikimedia.org/wiki/File%3AGeneral_Electric_logo.svg">via Wikimedia Commons</a>

General Electric released the earnings results from its first quarter before opening bell this morning, posting adjusted earnings of 31 cents, a 6% year over year decline, on revenue of $29.4 billion, a 12% decline. Analysts had been expecting GE to post earnings of 30 cents per share on revenue of $34.23 billion for the quarter.

On a GAAP basis, GE reported a loss of $13.6 billion or $1.35 per share.

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GE’s industrial segment performs well

General Electric Company (NYSE:GE) saw profits in its Industrial segment increase 9%, with five out of the seven segments posting increased earnings. Overall, the Industrial segment contributed 16 cents per share in operating earnings. The segment’s revenue fell 1% to $24.4 billion. Oil and Gas revenue was flat with last year. The gross margin in the Industrial segment was 26.2%, an increase of 90 basis points. The operating margin increased 120 basis points to 14.6%.

The business reported $850 million in equipment order from ENI and a contract to deliver 100 trains to Angola. GE also secured an agreement for 1. 5 gigawatts of power in Ghana and received an order for an HA turbine in Latin America. The company recorded $800 million in LEAP orders and $1.2 billion in GE90/GE9X orders.

The Industrial Internet business signed a software agreement with a major oil company, and the Healthcare business reported a 26% increase in Bioprocess revenue. The Energy Management business saw revenues from Power Conversion rise 6%, while the Lighting business reported a 76% increase in LE revenues and major products with Wal-Mart, Under Armour and Amazon.

General Electric said it is on track for its previously provided guidance for earnings of between $1.10 and $1.20 per share for the full year.

Exiting General Electric Capital

The GE Capital segment lost $1.25 per share. Excluding the impacts from the exit of GE Capital during the quarter, the segment posted earnings of 15 cents per share.

The company reported a real estate transaction of $26.5 billion, and GE Capital plans to return about $35 billion in capital to the parent company within the next three years. General Electric Company (NYSE:GE) reported the “potential” for shareholders to receive at least $90 billion back through dividends, share repurchases and Synchrony over the next three years.

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