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General Electric reported weaker than expected third quarter earnings before the open Tuesday. $GE also slashed its dividend to a penny  also an SEC probe into its accounting practices widened. GE fell to a new seven year low on the negative news flood.

GE CEO Larry Culp

New GE CEO Culp putting his own stamp on the company 

General Electric Co NYSE: $GE Reported Q3 Earnings Before Open Tuesday

$0.14 Missed Exp $0.21 EPS AND $$29.5 Missed Revenue Forecast of $29.88 Billion 

Earnings

General Electric reported Q3 earnings on Tuesday before the market at just 14 cents a share on revenue at $29.6 billion less than a consensus EPS forecast of $0.21 on revenue of $29.88. The reported EPS for the same quarter last year was $0.29. 

Segments

  • Power revenue - 33% to $5.74 billion.
  • Renewable energy +7% to $5.67 billion.
  • Aviation revenue +12% to $7.45 billion.
  • Oil and gas revenue flat at $5.75 billion.
  • Healthcare revenue also flat at $4.71 billion.
  • Transportation revenue -2% to $932 million.

GE plans to reorganize its struggling Power business into two units. One will be combine GE's gas product and services group. The other will include GE Power's other assets including Steam, Grid Solutions, Nuclear, and Power Conversion.

Reiterating past company statements, CFO Jamie Miller said on the GE earnings conference call that Power woes will cause a "significant miss" of full-year cash flow targets, with problems deeper and lasting longer than previously expected.

Segment Consensus Estimates for Q3 2018 Revenues

  • GE Aviation forecast is $7,632 million, higher than $7,519 million recorded in the previous quarter and $6,816 million in the year-ago quarter.
  • GE Renewable Energy is $3,182 million, higher than $1,653 million recorded in the previous quarter and $2,905 million in the year-earlier quarter
  • GE Healthcare is $4,732 million, higher than $4,724 million recorded year-ago quarter.
  • GE Transportation is $935 million, lower than $942 million recorded in the prior quarter and $1,074 million in the year earlier quarter last year. General Electric has planned to soon divest its Transportation business arm to Wabtec Corporation.
  • GE Oil & Gas is $5,756 million, higher than $5,554 million recorded in the last quarter and $5,365 million in the prior-year quarter.
  • General Electric Capital is $2,183 million, lower than $2,429 million recorded in the previous quarter
  • GE Lighting is $431 million, lower than $2,905 million recorded in the year-earlier quarter.
  • GE Power is $5,969 million, lower than $7,579 million recorded in the prior quarter and $8,679 million in the comparable period last year. 

General Electric Co NYSE: $GE

Reaction · Pre-market Pre-market 10.63 −0.53 (-4.75%)

GE Earnings Q3 18

 

What To Look For:

  • Aviation margin guidance, and particularly for commentary on the impact of LEAP production.
  • Power services margin, excluding the impact of the hit from the blade turbin issue.
  • GE Power blade turbine issue, any more surprises?
  • Renewable energy segment wind power price pressures Dividend plans, cut or maintenance?
  • Baker Hughes, a GE Company seperation. intends to exit the oil and gas businesses by disposing its 62.5% interest stake in Baker Hughes.
  • Update on stans alone Healthcare company
  • FCF guidance
  • CEO Culp's performance in the conference call

 

General Electric Q2 Earnings Recap

Earnings:

GE earned 19 cents a share on revenue of $30.104 billion ahead of the expected 18 cents a share on revenue of $29.82 billion. Earnings were down 10% year-over-year. On a reported basis, profit came in at $615 million or $0.08 per share, declining 30% and 33% respectively.

  • General Electric Co NYSE: $GE
  • Reaction · Pe-market $13.82 ▲ 0.90 (0.66%)

GE Earnings Q2 18

Source: GE, AlphaStreet, TradersCommunity

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