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Friday, October 21, 2016

General Electric (GE) reported earnings on Fri 21 Oct 2016 (b/o)

** chart before earnings **


** charts after earnings **




 









General Electric beats by $0.02; narrows FY16 EPS in-line, lowers organic rev growth; increasing buyback by $4 billion  :
  • Reports Q3 (Sep) earnings of $0.32 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.30; total segment revenue rose 3.8% year/year to $30.02 bln; consolidated rev +4% to $29.27 bln; unclear which is comparable to $29.68 bln Capital IQ Consensus. 
  • 3Q'16 orders $26.9B, +16%; (6)% organic.
  • Backlog strong at $319B
  • Alstom orders $5.2B with strength across the board
  • Services orders +1% organically
  • Strength in services across Renewables, Aviation & Healthcare
  • Backlog +6% ex. Alstom
  • Slow growth and volatile environment... Challenges continue in resource sector
  • Co issues in-line guidance for FY16, narrows EPS to $1.48-1.52 from $1.45-1.55, excluding non-recurring items, vs. $1.49 Capital IQ Consensus. 
    • Organic growth +0-2% from +2-4%, +4% ex-O&G; CFOA +$32 bln.
  • Bridge to 2018: More challenging environment for Oil & Gas and related markets ... still positive on long-term outlook + Sustained performance in rest of GE. 

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