=General Electric (GE) reported earnings on Fri 21 July 2017 (b/o)

General Electric beats by $0.03, beats on revs; reaffirms FY17 EPS guidance :

• Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.25; revenues fell 11.8% year/year to $29.56 bln vs the $29.07 bln Capital IQ Consensus. Industrial segment organic revenue growth +2% with orders +6% (+5% organic); Industrial op profit margins +10 bps.
  • Rev by segment: Power +5% to $7 bln; Renewable energy +17% to $2.5 bln; Oil & Gas -3% to $3.1 bln; Aviation flat $6.5 bln; Healthcare +4% to $4.7 bln; Transportation -14% to $1.1 bln; Energy Connections and lighting -27% to $3.2 bln
  • "GE's portfolio enables us to execute in a slow-growth, volatile environment, with Industrial segment organic revenues* +2% and orders +6%. We delivered $0.28 of Industrial operating + Verticals earnings per share* and reported Industrial operating margin* +10 bps. GE's Industrial CFOA*-b) for the second quarter was $1.5 billion, significantly better than first quarter and better than second quarter last year. We expect cash flow to continue to improve throughout the year. We've reduced our Industrial structural costs* year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year. The global scale of the Company, along with our ability to innovate industry-leading products and services, will help us navigate the current environment and unlock productivity across our businesses and markets." - Outgoing CEO Jeff Immelt.
• Co reaffirms guidance for FY17, sees EPS of $1.60-1.70, excluding non-recurring items, vs. $1.62 Capital IQ Consensus Estimate; Industrial op profit $17.2B(ex. gains/restructuring); Organic growth of 3-5%; Margin expansion ~100 bps; Structural cost out $1B; FCF + dispositions $16-20 bln.