General Electric and Honeywell released their latest earnings reports before opening bell this morning. GE posted adjusted earnings of 23 cents per share on $29.3 billion in revenue. Analysts had been expecting earnings of 30 cents per share and $29.6 billion in revenue. In last year’s third quarter, the company reported $28 billion in revenue and 19 cents per share in adjusted earnings.
Honeywell posted adjusted earnings of $1.67 per share on $9.8 billion in sales. Analysts had been expecting $1.60 per share in earnings and $9.8 billion in revenue. In last year’s third quarter, the company reported $9.6 billion in sales and $1.60 per share in earnings.
General Electric’s orders and backlog grows
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GE’s net earnings declined 12% year over year to 22 cents per share. Industrial segment organic revenues grew 1% to $24.2 billion, while Industrial earnings were 32 cents per share, marking a 10% increase, or $2.9 billion. The industrial margin declined 130 basis points to 10$, while the industrial operating margin declined 20 basis points to 15.3%.
GE’s orders increased 16% year over year to $26.9 billion from last year’s $23.2 billion. Orders include $13.9 billion in equipment and $13 billion in services. The company’s backlog grew 18% compared to the year-ago quarter to $310 billion, including $85 billion in equipment backlogs and $234 billion in services backlog.
GE tightened its guidance for the full year. It now expects full-year earnings to be between $1.48 and $1.52 per share, compared to the previous outlook of $1.45 to $1.55 per share. Consensus stands at $1.50 per share.
Shares of General Electric edged lower by as much as 1.03% to $28.77 in premarket trades this morning.
Honeywell issues weak Q4 outlook
Honeywell’s GAAP earnings were $1.60 per share, including 7 cents per share in restructuring costs. Aerospace sales declined 6% to $3.6 billion, while Home and Building Technologies sales grew 17% to $2.7 billion. Performance Materials and Technologies sales grew 2% to $2.3 billion, while Safety and Productivity Solutions revenues declined 2% to $1.2 billion.
Honeywell expects fourth quarter earnings to be between $1.74 and $1.78 per share. Consensus estimates vary here depending on which outlet is doing the polling, but Reuters stood at $1.75 per share as of early this morning. The consensus always depends on which outlet is doing the polling and which analysts they poll. The company expects sales for the full year to come in between $39.4 billion and $39.6 billion, representing a 2% to 3% growth rate.
Shares of Honeywell rose 1.72% to $110 in premarket trades this morning.