General Electric Company (GE) Beats Earnings Estimates

General Electric GE

General Electric Company (GE) released its second quarter earnings report before opening bell this morning, posting adjusted earnings of 31 cents per share on $32.75 billion in revenue, a 2% year over year increase. Analysts had been expecting earnings of 28 cents per share and $28.7 billion in revenue.

In the same quarter a year ago, GE posted adjusted earnings of 24 cents per share

General Electric  Industrial business remains strong

Net losses were $1.4 billion or 13 cents per share (including discontinued operations), compared to last year’s profit of 35 cents per share or $3.55 billon. GAAP earnings from continuing operations fell 14% to 24 cents per share.

GE’s Industrial business saw a 5% increase in operating profits, with five out of seven segments increasing their earnings and all of them increasing earnings organically. Revenues for the Industrial business were flat at $26.9 billion but posted organic growth of 5%. The segment had a backlog of $272 billion, an 8% year over year increase that also set a new record high.

Orders for the industrial business increased 8% overall and 13% organically, Equipment orders remained strong, with Aviation orders rising 37% and Power and Water orders increasing 29%. The Industrial business by itself posted operating earnings of 26 cents per share, an 18% increase.

GE also upped its guidance for operating earnings in the Industrial segment to between $1.13 and $1.20 per share.

General Electric – GE Capital dispositions ahead of schedule

General Electric has been focusing on disposing of its financial arm, and so far this year, te company has signed off $68 billion of it, putting the GE Capital dispositions ahead of schedule. The company is on track to close about $100 billion of GE Capital dispositions by the end of the year.

The verticals in the GE Capital segment did do well during the second quarter, posting earnings of 5 cents per share and staying on track for earnings of about 15 cents per share this year. GE is aiming for between $120 billion and $150 billion in signings for GE Capital.

Shares of GE rose as much as 2.07% to $27.59 per share in premarket trading this morning.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

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