General Electric's bad Q3 Earnings Just the Tip of the Iceberg

USA industrial giant General Electric slumped in pre-market trade on Wall Street on Friday after it reported that its quarterly profits fell short of expectations.

Shares of GE were down 7 percent Friday morning prior to the opening bell of the New York Stock Exchange, trading at just under $22 a share.

"This was a very challenging quarter", said CEO John Flannery, after his first official quarter at the helm. Flannery said it should leave GE in a "better position in 2018 and beyond".

The US industrial conglomerate, newly led by chief executive John Flannery, reported net profit of $1.8 billion, down 9.7 percent from the year-ago period. The retrenchment will leave GE, which spent more than $5 billion on research and development previous year, with just two global research sites, located in Niskayuna, N.Y., and Bangalore, India. Excluding non-recurring items, adjusted earnings per share were $0.29.

Excluding items, industrial cash flows from operating activities was $1.74 billion in the third quarter ended September 30, down from $2.90 billion, a year earlier.

GE reported adjusted profit of 29 cents a share compared with the 49 cents a share analysts had expected, according to a consensus of estimates from Thomson Reuters I/B/E/S. Operating profit margin rose 1.5 points to 8.8%. Analysts were looking for revenues of $32.56 billion. Revenue from GE's power, oil & gas, aviation, healthcare and transportation business beat expectations, while renewable energy revenue fell short.

During the quarter, GE closed the $3.4 billion sale of its water and process technologies business to Suez and agreed to sell is industrial solutions business to ABB for $2.6 billion.

The Baker Hughes acquisition also accounted for the 14.4% increase in the company's consolidated revenues.

Like this



20 Октября 2017
Audi A7 Sportback arrives sporting Hybrid tech - and it looks NEW too
The Head-up display unit that projects important information onto the windscreen and voice control is available as an option. Every Audi A7 features 10.1-inch display sitting above the center console as it follows the steps of its A8 sibling.

20 Октября 2017
These Companies Want to Send a Space Station Into the Moon's Orbit
From there, Bigelow Aerospace plans to test the space module to see if it is "working properly", according to the announcement. Bigelow Aerospace is developing two B330 commercial space station habitats that will be ready for launch any time after 2020.

20 Октября 2017
Exxon Mobil Corporation (XOM) Cut to Hold at Vetr Inc
CWH Capital Management Inc. bought a new position in Exxon Mobil Corporation in the second quarter worth approximately $114,000. Also, Exxon Mobil Corporation (XOM ) needs to overturn a -4.62% decrease it experienced over the past twelve months.

20 Октября 2017
Trump's Third Travel Ban Blocked By A Second Federal Judge
The president has maintained his push for a travel ban has been motivated by a desire to protect the USA from terrorism. Watson is also responsible for tossing a few gallons of cold water on the travel ban once it was allowed to go forward.

20 Октября 2017
Katy Perry Got Stuck On a Floating Prop at Her Nashville Show
You'd better put your phones up, it's a YouTube moment!' Katy told the crowd in a video posted on YouTube: "I'm literally stuck". Katy Perry found herself lost in space at a gig in Nashville this week (Oct. 18). "She handled it just Luvvly".

20 Октября 2017
Neymar: I'll help 'golden boy' Mbappe the same way Messi helped me
Then Cavani scored the 2-0 just before the break. "The match started very well with a goal in the third minute". He played a quick give-and-go with Marco Verratti before rifling the ball into the far corner at a tight angle.

20 Октября 2017
Mobile customers overcharged by providers after contracts end, research suggests
Many phone contracts are paid monthly over two years and cover the cost of the customers' phones, which can be hundreds of pounds to buy outright.

20 Октября 2017
Ozil Tells Teammates Which Club He Is Joining
Arsenal playmaker, Mesut Ozil, is so confident he will be playing for Manchester United next year. Arsenal are ready to sell Ozil in January but would loathe to sell him to United.

20 Октября 2017
Justin Thomas grabs early PGA Tour's CJ Cup lead
Fellow Spaniard Pablo Larrazabal shot 67 to share second with England's Robert Rock. New Zealand's Lydia Ko was in a group of five tied for fifth at 70.

20 Октября 2017
NextEra Energy Partners, LP (NYSE:NEP) Under Analyst Spotlight
Berson & Corrado Investment Advisors, LLC downsized its ownership by selling 2,875 shares a decrease of 15.1% in the quarter. It has underperformed by 64.43% the S&P500.The move comes after 8 months positive chart setup for the $740.17M company.