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GE Beats on Q2 Earnings & Revenues, Reiterates 2016 View

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Industrial goods manufacturer General Electric Company (GE - Free Report) 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 completed its appliance business divesture 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 6.8%, beating estimates twice.

Earnings estimate revisions have moved in both directions 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 second-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 beat estimates. The Zacks Consensus Estimate called for EPS of 46 cents, and the company reported operating+verticals EPS of 51 cents.

GENL ELECTRIC Price and EPS Surprise

GENL ELECTRIC Price and EPS Surprise | GENL ELECTRIC Quote

Revenue: Quarterly revenues surpass estimates. GE posted consolidated revenues of $33,494 million, compared with Zacks Consensus Estimate of $30,844 million.

Key Stats to Note: Since Apr 2015 till the end of Jun 2016, GE Capital inked sale agreements worth approximately $180 billion in ENI, of which it has already completed deals worth $156 billion. 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 marginally up in pre-market trading following the healthy earnings beat.

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

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