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GE Misses Q3 Earnings, Beats on Revenues; 2017 View Lowered

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Industrial goods manufacturer General Electric Company (GE - Free Report) is aiming to focus on its core industrial operations after completing the GE Capital exit plan. The company has also reshuffled the top management to fuel its growth engine. John Flannery took the helm as the Chairman and CEO of the company, replacing Jeff Immelt, who led the company since 2001.

GE has been selectively acquiring assets to boost its Industrial Internet vision. In addition, GE has completed the merger of its Oil & Gas business with Baker Hughes to form an industry leader with an unrivalled mix of service and equipment capabilities. However, for a company as big 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 9.7%, beating estimates thrice.

Earnings estimate revisions have gone downhill in the last month as investors retain a bearish stance about the performance of the company. Currently, GE has a Zacks Rank #5 (Strong Sell), but that could definitely change following third-quarter 2017 earnings report, which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: GE operating earnings misses estimates. The Zacks Consensus Estimate called for EPS of 50 cents, and the company reported operating+verticals EPS of 29 cents.

General Electric Company Price and EPS Surprise

 

General Electric Company Price and EPS Surprise | General Electric Company Quote

Revenues: Quarterly revenues exceed estimates. GE posted consolidated revenues of $33.5 billion, compared with Zacks Consensus Estimate of $31.9 billion.

Key Stats to Note: GE has lowered its operating framework for 2017 and expects industrial operating+vertical EPS in the range of $1.05–$1.10, significantly down from $1.60–$1.70 expected earlier. The company has deferred its dividend payout for the second half of the year.

Stock Price: Shares were down in pre-market trading following the release at the time of write-up on a significant earnings miss.

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

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