General Electric and Procter & Gamble released their latest earnings reports before opening bell this morning. GE posted adjusted earnings of 46 per share and $33.09 billion in revenue. Analysts had been expecting 46 cents per share in earnings and $33.94 billion in revenue. In the previous year’s fourth quarter, General Electric reported $33.89 billion in revenue.
Procter & Gamble reported earnings of $2.88 per share on $16.86 billion in sales, compared to the analyst estimate of $16.8 billion in revenue. In the year-ago quarter, the company reported $16.92 billion in revenue. Core earnings rose 4% year over year to $1.08 per share, while currency-neutral core earnings rose 9% from the year-ago quarter.
General Electric shares fall on revenue disappointment
Is It A Good Time to Be a Stock Picker? Interview With Worm Capital
ValueWalk's Raul Panganiban interviews Eric Markowitz, Director of Research, and Dan Crowley, Director of Portfolio Management, at Worm Capital. In today’s episode they discuss their approach at Worm Capital and where they find opportunities. Q4 2020 hedge fund letters, conferences and more Interview with Worm Capital's Eric Markowitz and Dan Crowley
General Electric’s GAAP earnings per share plunged to 39 cents from 64 cents per share in the same quarter a year ago. The company’s orders rose 4% or 2% on an organic basis, while its industrial margin edged lower to 12% from 15.2% in the previous year. GE had an order backlog of $321 billion, a 2% improvement from the fourth quarter of 2015 when the backlog stood at $315 billion.
“We executed on our 2016 goals and continued to drive growth across our businesses through the GE Store while investing in additive manufacturing and digital technology,” GE Chairman and Chief Executive Jeff Immelt said in a statement. “We delivered $1.49* of earnings per share this year and 1% of organic growth. We reported $32.6 billion of free cash flow and dispositions and returned $30.5 billion to shareowners through dividends and buyback.”
Shares of General Electric decline by as much as 1.79% to $30.65 in premarket trades this morning.
Procter & Gamble shares rise
Procter & Gamble’s Beauty sales rose 3% organically, while Grooming sales rose 1%. Health Care sales grew 7%, while Fabric & Home Care sales improved 1%. Baby, Feminine and Family Care sales increased 1% year over year.
Procter & Gamble reaffirmed its 2017 earnings per share guidance of growth in the mid-single digit percentages. The company boosted its organic revenue growth estimate for this year, however, to between 2% and 3% from the previous guidance of 2%.
Procter & Gamble shares rose by as much as 3.07% to $87.25 in premarket trading this morning.