General Electric (GE) Tops Q2 Views Amid Tough Comps; Looks to Separate Energy Business
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Price: $356.03 -2.98%
Revenue Growth %: +16.0%
Financial Fact:
Net earnings (loss) attributable to the Company: -45M
Today's EPS Names:
CRMT, PKE, HELE, More
Revenue Growth %: +16.0%
Financial Fact:
Net earnings (loss) attributable to the Company: -45M
Today's EPS Names:
CRMT, PKE, HELE, More
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General Electric Co. (NYSE: GE), the diversified conglomerate in industries from Aerospace to Entertainment, is higher on the session Friday, following stronger-than-expected results for its second quarter.
Total revenue at GE rose 2.5 percent to $36.50 billion, from $35.62 billion in the prior year. The Street was looking for sales of $36.86 billion. Revenue performance was negatively impacted by foreign exchange and continued shrinkage of its GE Capital business, according to the company.
Net earnings attributable to the company fell 18 percent to $3.11 billion, or 29 cents per diluted share. Operating earnings in the quarter were 38 cents per share, versus the Street consensus of 37 cents.
Estimize consensus views called for EPS of 39 cents and revs of $36.76 billion.
Wind turbine orders dropping 37 percent lead to a 1 percent decrease in infrastructure orders to $23.1 billion. Aviation orders were up 5 percent with transportation up 2 percent.
GE Capital profit rose 31 percent to $2.1 billion, maintaining a Tier 1 common ratio at 10.1 percent. The segment returned $3 billion to GE in the quarter.
Looking ahead, GE's CEO Jeffrey Immelt commented, "Our Industrial outlook remains positive. Margins have stabilized and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases. We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $17 billion to 19 billion based upon the restart of the GE Capital dividend."
Additionally, GE announced the separation of its Energy business into three standalone businesses effective in the fourth quarter of 2012. The three units will be: Power and Water, Oil and Gas, and Energy Management.
Oppenheimer commented on the results. The firm said Industrial revs matched expectations with operating profit coming in ahead of views. Oppenheimer also noted the tough comps for the infrastructure segment.
Overall, Oppenheimer said Industrial growth remains robust with operating margins trending favorably into the second-half of 2012. Additional positives include improving prices, mix, and volume leverage.
Total revenue at GE rose 2.5 percent to $36.50 billion, from $35.62 billion in the prior year. The Street was looking for sales of $36.86 billion. Revenue performance was negatively impacted by foreign exchange and continued shrinkage of its GE Capital business, according to the company.
Net earnings attributable to the company fell 18 percent to $3.11 billion, or 29 cents per diluted share. Operating earnings in the quarter were 38 cents per share, versus the Street consensus of 37 cents.
Estimize consensus views called for EPS of 39 cents and revs of $36.76 billion.
Wind turbine orders dropping 37 percent lead to a 1 percent decrease in infrastructure orders to $23.1 billion. Aviation orders were up 5 percent with transportation up 2 percent.
GE Capital profit rose 31 percent to $2.1 billion, maintaining a Tier 1 common ratio at 10.1 percent. The segment returned $3 billion to GE in the quarter.
Looking ahead, GE's CEO Jeffrey Immelt commented, "Our Industrial outlook remains positive. Margins have stabilized and Energy, Oil & Gas, and Transportation performed very well with double-digit profit increases. We are confident in our double-digit EPS growth expectations for 2012 and are raising our operating cash expectations to $17 billion to 19 billion based upon the restart of the GE Capital dividend."
Additionally, GE announced the separation of its Energy business into three standalone businesses effective in the fourth quarter of 2012. The three units will be: Power and Water, Oil and Gas, and Energy Management.
Oppenheimer commented on the results. The firm said Industrial revs matched expectations with operating profit coming in ahead of views. Oppenheimer also noted the tough comps for the infrastructure segment.
Overall, Oppenheimer said Industrial growth remains robust with operating margins trending favorably into the second-half of 2012. Additional positives include improving prices, mix, and volume leverage.
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