GE Q4 Earnings in Line, Offers Bullish 2017 Guidance
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 been selectively acquiring assets to boost its Industrial Internet vision. Such opportune transactions are likely to improve the top line of the company. In addition, GE has also inked a definitive agreement with Baker Hughes Incorporated to merge its Oil & Gas business with the latter to form an industry leader with an unrivalled mix of service and equipment capabilities. 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 4.5%, beating estimates thrice.
Earnings estimate revisions have remained static in the last month as investors retain a neutral stance about the performance of the company. Currently, GE has a Zacks Rank #3 (Hold), but that could definitely change following fourth-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 matches estimates. The Zacks Consensus Estimate called for EPS of 46 cents, and the company reported operating+verticals EPS of 46 cents as well.
Revenue: Quarterly revenues miss estimates. GE posted consolidated revenues of $33,088 million, compared with Zacks Consensus Estimate of $34,150 million.
Key Stats to Note: GE has offered a bullish guidance for 2017 with industrial operating+vertical EPS expected in the range of $1.60–$1.70, representing organic growth of 3–5%, and remains confident to return $19–$21 billion to shareholders.
Stock Price: Shares were relative flat in pre-market trading following the release at the time of write-up as investors probably looked for a healthier earnings beat.
Check back our full write up on this GE earnings report later!
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