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GE tumbled 2.2% in today's trade as Q4 revenue fell 2.4% Y/Y, with organic revenue in industrial businesses sliding 1% and coming in below the company's 0%-2% growth forecast and after having to reduce revenue forecasts throughout the year.
- Analysts question whether the Q4 results could mean GE will miss the 2017 target of 3%-5% growth that the company reaffirmed today, but with Alstom revenue included - as it will be in future quarters - hitting the revenue target "doesn't look like a stretch," says RBC analyst Deane Dray.
- Noting GE's overall organic revenue rose 4% in the quarter, CEO Jeffrey Immelt said in today's earnings conference call that felt "pretty secure" about the 2017 target.
- Q4 revenue in GE's oil and gas business sank 22%, but the decline was expected amid weak market conditions.
- GE’s Q4 industrial operating cash flow of $8.2B made it the "biggest cash quarter in our history,” Immelt said.
- Bloomberg's Brooke Sutherland writes hopefully that GE stands to benefit from tax reform and plans for infrastructure stimulus, and the stock's gains have not kept pace with the broader post-election rally, indicating some skepticism may have been baked in and leaving some room to rise.