General Electric Company (symbol GE) first-quarter revenue may decline last year, but industrial giant still managed to exceed analysts’ expectations due to the strength in several key businesses.
General Electric Company’s first quarter results April 21 issued by no means overwhelmingly positive. But turned himself into a pure industrial company GE’s goal to continue to make progress, albeit slowly. As a long-term income stock remained unchanged at GE’s case.
GE has spent the last two years going through a slow, painful transition from what is scattershot group away from unrelated business. It is basically a banking, industry and media companies. In HODgepodge, making it difficult for investors to value the business. This should not be a problem, analysts said. “From a typical enterprise groups in the financial services, media, industry and technology-based diversified business interests, the company has trimmed its business portfolio to focus on its core business of manufacturing and digital edge,” Zacks Research of stock Say.
However, this has not been applied in terms of take-off as an industrial enterprise. Blame the oil market. Oil and gas revenues fell 9 percent, down 33% of group profit. GE is making a bold move to oil services giant Baker Hughes (BHI) combined to solve the energy demand. The deal will be completed later this year, will save wrung this line of business, a second, will relieve pressure on the bottom line. But for now, the global oil supply surplus is still a heavy burden.
Other segments GE announced strong results in the latest quarter. GE’s power, renewable energy, aerospace, medical and transportation companies have exceeded analysts’ expectations. Highlights include revenue rose 17%, from the turbine and power plant, which is GE’s largest industrial sector. A wider range of renewable energy companies to report quarterly operating income last year increased by 22%.
As a whole, GE provided $ 61.9 billion, or 7 cents per share, net income was $ 61 one million loss, compared to a penny per share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 21 cents PER sharing. Analysts surveyed by Thomson Reuters are looking for every17 cents per share, adjusted earnings per share. Income from $ 27.85 one billion fell 1 percent to $ 27.66 billion, up but managed to top Wall Street estimates of $ 26.37 billion. After
The latest results come out for a month, the company agreed to reduce the planned increase in the cost of doubling the pressure from activist investors on the occasion of Trian Fund Management. While this makes the management of foot fire, which is good news for shareholders, because it will help the company achieve the profit goal of $ 2 per share for 2018. Analysts are currently looking for 2018 earnings per share of $ 1.90 for the points .
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Savings will also help the company achieve its commitment to return cash to shareholders re-Mo. GE expects to pay about $ 8 billion this year between $ 11 one billion dividend and buyback to $ 13 one billion worth of its own stock.
At the same time, as anyone who holds GE shares can be proved that it did not wow, you have cost-effective. But it is not as sleepy as some might think. Since the bull market began in March 2009, GE has actually match the Standard & Poor’s 500-stock index, including dividends performance. As income stock, GE has not really disappointing. The idea is that as an industrial company, GE will be ready to outstanding performance.
That said, this is a revenue play. GE has paid dividends for more than a century, and has delivered annual dividend growth rate of nearl Ÿ 9% over the past five years. It shows its commitment to return cash to shareholders. The current dividend yield on the stock is a healthy 3.2%.
From the earnings in the ultimate takeaway is that when it comes to long-distance GE is a solid dividend stock nothing has changed.