GE Reports Quarterly Results (GE)

U.S.’s largest conglomerate, General Electric Co. (NYSE: GE) reported on Friday that quarterly earnings rose by 2.5%, from the continuing operation, beating analysts’ estimation. The Company attributed stronger results to rising equipment demand from the U.S. energy sector even as demand remains weak in the Europe.

Following the earnings announcement, shares gained 35 cents, or 1.8 percent, to trade at $20.15 in midday trading.

The Company announced that its second-quarter net earnings attributable to common shareholders — which do not take in to account the discontinued operations – stood at $3.11 billion, or 29 cents per share, down from $3.69 billion, or 35 cents per share, a year earlier- 15.8% drop in earnings compared to corresponding fiscal quarter.

However, after excluding one-time expenses such as charges related to its subprime mortgage business and write-down of its Japanese consumer finance arm- GE’s earnings stood at 38 cents per share. Analysts polled by Thomson Reuters estimated earnings from continuing operations at 37 cents a share.

GE’s revenues for the fiscal second quarter rose by 2.5% to $36.5 billion from $35.62 billion, nevertheless, it could beat the Wall Street’s revenue forecast- which was $36.8 billion for the quarter.

So far this year, the GE stock has outperformed the Dow Jones Index. While GE stock gained 10.8%, year-to date, the Dow Jones in the same period gave a return of 5.7%.

The company also maintained its outlook for double digit growth in earnings for the fiscal third quarter.

Commenting over the results, GE’s CEO, Jeff Immelt said to investors, “GE is wading through “a still volatile global economy. But its core businesses are growing profits, and we ended the quarter with a record backlog.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.