GE Improves Sales, Beats Estimates

GuruFocus.com

- By Julie Young

General Electric (GE) reported its second quarter earnings on July 23. The firm's earnings report beat both revenue and earnings estimates for the quarter, while also significantly improving sales and EPS.

Revenue for the second quarter was $33.5 billion, beating analysts' average earnings estimate by $1.74 billion. Sales revenue for the quarter was up 14.6% from the comparable quarter. EPS for the quarter was 51 cents, beating analysts' average estimate by 5 cents and increasing 65% from the comparable quarter.


On June 28, the company was released from its systemically important financial institution status, which helps it improve its recently increased focus on industrials. In recent months the company has been divesting its financial and non-industrial businesses. This focus has helped the company to improve efficiencies and sales in its core industrial businesses.

Sales for the quarter were led by the firm's energy connections business, which was up 55% from the comparable quarter. Sales from the firm's power and renewable energy businesses were also significantly higher. Revenue from power sales was up 31% and revenue from renewable energy was up 28%.

GE also saw profitability gains in power, aviation and healthcare.

In a CNBC report following the firm's earnings, Nick Heymann of William Blair and Company provided the following insights on GE's second quarter.

Disclosure: I do not own any shares of GE.

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This article first appeared on GuruFocus.