General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook

October 21, 2016 6:29 AM EDT

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(Updated - October 21, 2016 6:36 AM EDT)

General Electric (NYSE: GE) reported Q3 industrial and operating verticals EPS of $0.32, versus the analyst estimate of $0.30. Revenue for the quarter came in at $29.3 billion versus the consensus estimate of $29.64 billion.

"Our strength as a diverse, Digital Industrial company continues to enable us to deliver in a slow growth, volatile
environment. This quarter, our teams earned $0.32* of earnings per share with strong performance in Power,
Renewable Energy, Aviation, and Healthcare." - CEO Jeff Immelt

GE also increased its stock repurchase program allotment by $4 billion.

Highlights:

Power:
• Received $1.9 billion contract for EDF Energy’s nuclear power project in the U.K.
• 10th consecutive quarter with HA turbine orders; 6 new HA turbine orders booked and 7 units shipped
• Completed majority of $250 million acquisition of Doosan Engineering & Construction’s Heat Recovery Steam Generator business

Renewable Energy:
• Booked $636 million Merkur Offshore Wind project consisting of 66 GE Haliade 150 – 6MW turbines
• Received $404 million in orders to repower and upgrade U.S. turbines
• Completed with Deepwater Wind the installation of first U.S. offshore wind farm in Rhode Island, consisting of 5 GE Haliade 150 – 6MW turbines

Aviation:
• Announced $1.4 billion acquisitions of Arcam AB and SLM Solutions Group AG for additive manufacturing
• CFM LEAP engine entered service with Pegasus Airlines Airbus A320neo; 11,000+ engines on order

Healthcare:
• Announced plans to invest €150 million for biopharmaceutical manufacturing in Ireland
• Announced 10-year agreement with Mission Health to increase efficiency and enhance patient care
• GE Healthcare acquired BioSafe Group SA to continue building out its cell therapy processing offering for customers

Transportation:
• Signed first-ever European digital pilot with Deutsche Bahn Cargo to use GE’s RailConnect™ 360 Asset Performance Management Solution to increase efficiency and predict maintenance

Energy Connections:
• Signed $133 million deal with Saudi Electric Company to provide 132 kV turnkey GIS projects

Capital:
• $4.2 billion* of industrial enabled orders in 3Q
• GE Capital Aviation Services delivered first A320neo,
powered by CFM LEAP, to AirAsia

Global Growth:
• Won contract with China Engineering Group to
repower Unit 4 of Bangladesh Ghorashal Power
Plant, adding 200MW

Current, powered by GE:

• Signed agreements with Intel and Qualcomm to develop sensor-based intelligent environments with smart lighting and Predix cloud connections

Digital:
• $509 million digital thread productivity 3Q YTD; ahead of total year plan
• ~16K developers and 219 partners now using Predix; on track for 2016 goals
• Acquired Meridium, valued at $495 million, to deliver comprehensive APM solutions to customers
• Signed MoU with Saudi Technology Development & Investment Company to co-create digital industrial solutions using Predix to support the Kingdom in line with Saudi Vision 2030

GUIDANCE:

General Electric sees FY2016 EPS of $1.48-$1.52, versus prior guidance of $1.45-$1.55 and the consensus of $1.50.

Press Release:

Corporate Presentation:

For earnings history and earnings-related data on General Electric (GE) click here.



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