GE Q2 Earnings & Revenues Beat Estimates, 2016 View Firm
Zacks Investment Research | Jul 21, 2016 09:18PM ET
Despite a challenging macroeconomic environment, sustained restructuring initiatives for a leaner firm with a re-focus on core operations enabled General Electric Company (NYSE:GE) to report strong second-quarter 2016 results. Operating earnings for the reported quarter were $3,613 million or 39 cents a share compared with $2,127 million or 21 cents a share in the year-ago quarter. Including industrial and other verticals, operating earnings were 51 cents per share and improved 65% year over year. The operating earnings (including industrial and other verticals) for the reported quarter comfortably exceeded the Zacks Consensus Estimate by 5 cents.
On a GAAP basis, the company reported net income from continuing operations of $3,281 million or 36 cents per share compared with $1,679 million or 17 cents per share in second-quarter 2015. The remarkable improvement in reported earnings was primarily due to a reshuffle in the operating portfolio and divesture of GE Capital assets to reduce the volatility in earnings and focus on the strong industrial roots of the company.
Revenues
Total consolidated revenue for the reported quarter increased 15% year over year to $33,494 million from $29,226 million in the year-earlier quarter, and well exceeded the Zacks Consensus Estimate of $30,844 million. While the Industrial segment revenue increased 7% year over year to $28,630 million, GE Capital revenues improved 3% to $2,771 million. Organic revenue growth for the Industrial segment declined 1% for the quarter due to slow growth and volatile environment.
Total orders for the quarter for the Industrial segment decreased 2% year over year to $26.6 billion, with significant order declines from the Transportation and Oil & Gas segments. Total backlog of equipment and services at quarter-end was record high at $320 billion, up 17% year over year.
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