Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

GE Matches on Q1 Earnings Estimate, Reiterates 2016 View

Industrial goods manufacturer General Electric Company GE is actively pursuing its massive restructuring program in order to create a simpler and nimbler firm with a re-focus on core operations. From a classic conglomerate with diversified business interests in financial services, media, industrial and technology-based operations, the company is pruning its operating portfolio to focus on core manufacturing businesses with a digital edge.

GE has sold its appliance business to Haier Group, a Chinese multinational consumer electronics manufacturing firm. The transaction unlocked incremental value by allocating more resources to high-growth core industrial businesses. However, for a company as large as GE, additional revenues needed for growth are quite large, posing a challenge in developing businesses on such a vast scale. In the last four trailing quarters, GE has reported a positive average earnings surprise of 7.6%, beating estimates thrice.

Earnings estimate revisions have moved in south in the last month as investors remain sceptical about the performance of the company. Currently, GE has a Zacks Rank #3 (Hold), but that could definitely change following first-quarter 2016 earnings report, which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: GE operating earnings match estimates. The Zacks Consensus Estimate called for EPS of 21 cents, and the company reported operating+verticals EPS of 21 cents.

Revenue: Quarterly revenues miss estimates. GE posted consolidated revenues of $27,845 million, compared with Zacks Consensus Estimate of $28,976 million.

Key Stats to Note: Till date, GE has inked sale agreements worth approximately $166 billion, of which it has completed deals worth $146 billion – well ahead of its plan. With valuable synergies realized from the Alstom acquisition, GE has reiterated its industrial operating EPS guidance for 2016 and remains confident to return $26 billion to shareholders.

Stock Price: Shares were slightly down in pre-market trading following the release as investors probably looked for a healthier earnings beat.

Check back our full write up on this GE earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&... blog">Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GENL ELECTRIC (GE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.