General Electric (GE) Q2 Beat 'Welcome Relief' for Investors

July 19, 2013 10:17 AM EDT
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Price: $31.21 -0.06%

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General Electric (NYSE: GE) stock traded higher on Friday morning following its Q2 earnings report. GE reported Q2 EPS of $0.36, $0.01 better than the analyst estimate of $0.35. Revenue for the quarter came in at $35.12 billion versus the consensus estimate of $35.58 billion.

Commenting, Deutsche Bank's John G. Inch said, "We believe expectations were relatively low for GE heading into the quarter, driven by concern toward the company’s margin expansion target of 70 bps (we believe many investors and analysts expected the company to officially lower its targets). While 2Q was never intended to be a "blockbuster" fundamental quarter given still challenged European and power generation markets, GE’s beat is a welcome relief from previous quarters where market expectations had exceeded operational results. We expect sequential quarters to improve."

"Overall, we view the 2Q results to represent a key positive inflection point – as difficult European power compares ease, end markets at least appear stable, the company’s cost cutting initiatives appear on track and previous order strength begins to show up in the shipped results," he said.

Deutsche Bank has a Buy rating on General Electric with a price target of $28.00

For an analyst ratings summary and ratings history on General Electric (NYSE: GE)click here. For more ratings news on General Electric click here.

Shares of General Electric closed at $23.63 yesterday.

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