GE Meets Q2 Estimates, Sees Strong Orders

Jul.14.06 | About: General Electric (GE)

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

GE's Net Income Rises 4.4% Amid Sale of Insurance Units

  • Summary: GE's Q2 results: Revenue up 9.2% to $39.90 billion, of which revenue from financial services rose 10% to $15.3 billion and revenue from infrastructure businesses rose 11% to $11.33 billion. Net income up 4.4%. EPS of $0.47, in line with the consensus estimate from sell-side analysts. GE reaffirmed its EPS guidance of $0.48-0.50 from continuing operations in Q3 and $1.94 to $2.02 for the full year. Cash flow from operations in the first half of this year was $14.3 billion, up from $8.0 billion last year, due to the $5.8 billion sale of GE's insurance businesses and a 9% increase in cash flow from it industrial businesses.
  • Comment on related stocks/ETFs: According to the press release, "Total company orders were up 17% for the quarter, showing strong future demand for our products and services. Orders for equipment increased 33%, including a 59% surge in Infrastructure orders, while services orders increased 13%." Nonetheless, the consensus estimate for next quarter of $0.50 is at the top of GE's own Q3 guidance range of $0.48-0.50.