GE added 1.06% on Friday to settle at $23.83 per share, despite slumping as much as 8% in premarket trading after the group released mixed quarterly results. In its third quarter results, the group reported a 14% increase in revenue to $33.47bn, easily surpassing forecasts of $32.56bn. However, adjusted earnings declined by 9% to 29 cents per share, much lower than expectations of 49 cents per share. This poor performance was partly attributable to GE’s power business, with the segment recording a 51% decline in profits to $611mn, down from $1.3bn in the previous corresponding period. Its oil and gas business reported a loss of $36mn, sharply lower than a profit of $353mn a year ago.
General Electric shed 3.94% on Monday to settle at $23.43 per share. This is the groups largest one-day decline in 15 months. This drop was partly due to reports Trian Partners’ Edward Garden will take over the board seat which is currently occupied by the retiring Robert Lane. This also follows Friday’s announcement, that GE CFO, Jeff Bornstein, is set to retire. In his place, Jamie Miller will be appointed. Mr Miller is moving from his role as the head of GE’s Transportation business. Although new CEO’s usually bring in their own teams, analysts are concerned the departure of the group’s CFO might mean more bad news and changes to come.
General Electric’s shares declined to their lowest level in 19 months on Friday, despite the group reporting better-than-expected results. The decline was mainly attributed to a 12% slump in revenue to $29.558bn, better than estimates of a decline to $29.015bn, but sharply lower than the $33.49bn recorded a year ago. Net profit for the period declined by 58% to $1.34bn, or 15 cents a share, much lower than the $3.30bn, or 36 cents a share, reported a year ago. On an adjusted basis, earnings declined to 28 cents per share, slightly higher than estimates of 25 cents per share, but sharply lower than the 51 cents per share recorded in the previous corresponding period.
General Electric completed the buyout of Baker Hughes on Monday. GE has merged its own oil and gas equipment and services operations with Baker Hughes and, as a result, “Baker Hughes, a GE company” has been formed. The new entity will list on the New York Stock Exchange on Wednesday. GE will own 62.5% of the combined group, with Baker Hughes shareholders owning the rest. The shareholders of Baker Hughes will also receive a one-time dividend of $17.50 per share. The newly formed group will become the second largest oilfield service provider by revenue, with headquarters in London and Houston.
On Friday, General Electric released its latest quarterly results, with the industrial giant surpassing analysts’ estimates for both earnings and revenue. In the first quarter, GE saw revenues come in at $27.66bn, slightly higher than expectations of $26.41bn, but 1% lower than that reported a year ago. The drop was partly due to lower sales in the group’s oil and gas and lighting businesses. Nevertheless, the group saw earnings from operations attributable to GE shareholders surge to $858mn, sharply higher than the $248mn recorded a year ago. Adjusted earnings per share were flat however at 21 cents, although this was more than enough to beat estimates of a decline to 17 cents.
General Electric shed 2.18% after releasing results which saw earnings in-line with expectations, while revenues disappointed. During the 4th quarter, General Electric recorded revenues of $33.08bn, slightly lower than estimates of $33.68bn. However, despite the miss, earnings were in-line with expectations of 46 cents per share, boosted by a strong performance in its power and renewable energy businesses. Lastly, for the year, the group reported earnings of $1.49 per share, $32.6bn of free cash flow and returned $30.5bn to shareholders through dividends and buybacks.
On Monday, General Electric shed 0.41%, after the group announced that it would merge its oil and gas business with Baker Hughes. As a result, the deal would create a company which would be the second largest oilfield services provider in the world, boasting annual revenues of $32bn. The new company’s market share would be above that of Haliburton, which attempted to acquire Baker Hughes last year, but will still fall below that of Schlumberger. As it stands, General Electric will own 62.5% of the new publicly-traded company, which is set to be listed on the NYSE. Baker Hughes traded sharply lower yesterday, down 6.29%, as investors fretted about the complicated structure of the deal.
On Monday, General Electric announced its intention to invest around $150 million in Nigeria by 2017. As it stands, the group is looking at development projects, but said that it would also invest in oil and gas industry projects. This is all part of the group’s plan to invest a total of $2bn in Africa in coming years. However, it must be noted that the announcement by General Electric does not quite add up to the amount that the Nigerian government expects General Electric to provide. In a speech on Saturday, Nigerian President Muhammadu Bahari said that the group would invest $2.2bn in a concession to revamp, manage and provide rolling stock for some of the country’s railway lines.
On Tuesday, General Electric ended marginally lower, down 0.77%, after the group announced it is looking to acquire two 3-D printing firms for a combined total of around $1.4bn. As it stands, GE will make an offer of around $700mn for Sweden’s Arcam and an offer of about $761mn for Germany’s SLM Solutions. This comes as the group attempts to expand its ability to make machines used to produce 3-D printed parts. The driving force behind GE’s foray into 3-D printing has been its large jet engine business, but it is also looking to use the new technology in its power turbine and medical equipment businesses too.
On Friday, General Electric reported results which saw both revenue and earnings come in higher-than-expected. For the 2nd quarter, revenues increased to $33.49bn, up from $29.23bn in the previous corresponding period, and better than forecasts of an increase to $31.57bn. In addition, the group reported earnings of $0.51, better than estimates of an increase to $0.46 and sharply higher than the $0.31 recorded a year ago. Lastly, the increase in revenue was mainly attributable to a 31% increase in sales in its power segment, while its renewable energy business saw sales increase by 28%, with both segments receiving a boost from the acquisition of Alstom’s energy business.