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GE (GE) Q1 'Broadly Disappointing' - Nomura

April 19, 2013 10:09 AM EDT Send to a Friend
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Nomura Securities analyst Shannon O'Callaghan weighed in on General Electric (NYSE: GE) following first quarter results this morning saying they it was as "broadly disappointing quarter with Industrial margins and Power & Water probably the primary concerns."

O'Callaghan comments, "GE reported adjusted 1Q13 EPS of $0.39 (including $0.04 net gain) so excluding the net gain, this would be $0.35 on a basis comparable to our $0.34 estimate and $0.35 consensus. Industrial operating profit missed our estimate by $0.04, with industrial revenues a 4% miss and industrial margins of 12.9% missing our 14.3% estimate by 140 bps. The misses in Industrial were broadbased with Power & Water, Oil & Gas, Aviation, and Healthcare all missing us by $0.01 each. GE Capital beat us by $0.01 due to a $0.04 beat in Real Estate (including NBCU $0.05 gain) while CLL missed us by $0.01 and Consumer missed by $0.03 (unclear if this is where restructuring hit to offset NBCU gain). All in, segment profit missed us by $0.03 while corporate and tax were a combined $0.04 better based our estimate of the adjustment for the NBCU gain, leading to a $0.01 reported beat vs. our estimate. Orders up 6% ex. Wind and FX were solid, but aside from that this it looks like a broadly disappointing quarter with Industrial margins and Power & Water probably the primary concerns."

The firm maintained a Neutral rating and price target of $24 on GE.

For an analyst ratings summary and ratings history on General Electric click here. For more ratings news on General Electric click here.

Shares of General Electric closed at $22.67 yesterday.




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