Orders plummeted 26 per cent and revenue was short of a few analysts’ estimates. Earnings translated into 29 cents per share, three cents above analyst estimates.
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Overall for the period ended September 30, GE reported a profit of $2.51 billion, or 25 cents a share, compared with a profit of $3.54 billion, or 35 cents a share, a year earlier.
General Electric Company (NYSE:GE) is a diversified infrastructure and financial services business.
GE said plans to exit its financial businesses are ahead of schedule and it expects its GE Capital unit to yield dividends of about $3 billion in 2015.
The average estimate among 130 Estimize users was for earnings of $0.27 per share and revenue of $28.62 billion.
All eyes on FridayWhen General Electric reports earnings tomorrow, focus on how the underlying business is performing, rather than how investors react to the news.
Revenue slipped 1.3 percent to $31.68 billion, with revenue in its oil and gas segment dropping 16 percent amid weakness in crude prices. The expected approximate $3 billion dividend amount is also on track for the future $18 billion expected in 2016. The Company operates its segments through its eight companies, -based to the marketplaces they serve: Water & Power, Oil & Gas, Energy Management, Air Travel, Health Care, Transportation, Appliances, and Illumination and GE Capital. The Lighting segment recorded higher revenues from LED bulbs.
Improvements were witnessed in the Aviation sector due to a booming market; revenues increase 5% YoY. The stock was acquired at an average cost of $31.84 per share, with a total value of $1,018,880.00. For example, he said, it was possible GE could raise its borrowings to buy back more shares, as Trian recommended.
GE’s position as the sole seller in the market at present for a type of low-emissions locomotive boosted earnings, and comparisons with last year’s sales to oil and gas customers would become more favorable after the fourth quarter, he said.
For Industrial segment, operating profit rose 5 percent, and was up 9 percent in organic terms with five of its of seven segments growing earnings.
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The industrial division’s orders were down 23% on a LFL basis to US$23.2bn. Analyst had a consensus of $0.26 EPS. Those numbers shouldn’t be surprising, though, given GE’s massive effort to sell off numerous divisions, most notably its finance arm. The Company also provides automotive lending services through General Motors Financial Company, Inc. These units directly relate to the core industrial operations of the company and will thus form an integral part of its corporate activities. The company has already closed asset sale transactions worth $60 billion year to date.
