General Electric released its latest earnings report before opening bell this morning, posting adjusted earnings of 21 cents per share on $27.66 billion in revenue. Analysts had been expecting earnings of 17 cents per share and $26.37 billion in revenue. In the same quarter a year ago, GE reported $27.85 billion in revenue.
General Electric swings to a profit
GE posted GAAP earnings of 7 cents per share or $619 million, an improvement from the year-ago quarter’s loss of 1 cent per share or $61 million. Earnings on continuing operations rose 233% year over year to 10 cents per share or $900 million.
Industrial segment revenues rose 7% organically to $26 billion, while the industrial operating margin improved 130 basis points to 12.6% on a non-GAAP basis. Orders rose 10% year over year, with equipment orders reaching $12.3 billion and services orders touching $13.4 billion. Order backlog rose 3% year over year, with equipment backlog standing at $83.9 billion at the end of the quarter and services backlog at $240.4 billion.
During the first quarter, General Electric had two HA gas turbine orders, including its first order in China. It still has 30 HA units in backlog. The company also had an order for three F gas turbines, three steam turbines, three HRSGs and other equipment for Bechtel, which is destined for the Cricket Valley Energy Center in New York.
GE reaffirms 2017 framework
GE management expects cash flows to improve as the year goes on and are not changing their full-year cash flow framework or operating framework at this time. They continue to expect organic revenue growth for the full year as well.
General Electric continued its exit of GE Capital, closing $7 billion in asset sales during the first quarter to hit $198 billion since it originally revealed the GE Capital Exit Plan. The company said all of the major transactions it was planning have now been completed.
Shares of GE rose by as much as 1.65% to $30.77 in premarket trades following this morning’s earnings report.