A Look At General Electric, By The Numbers

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WG Investment Research


  • GE shares have been on a downward trend since the beginning of the current year, and the long-term trend is nothing to write home about either.
  • In this article, I want to spend a few minutes looking strictly at the numbers (i.e. GE's operating results and financial position).
  • There are reasons to be bullish, but every investor needs to determine if they are willing to take on the risk (and there is definitely risk involved).
  • GE is a long-term buy at today's price, even with the risks factored in.

It was recently reported that General Electric (NYSE:GE) shares had their worst weekly drop since March 2009 (yes, since the Financial Crisis), as shares finished the week down almost 13%. Moreover, GE is the worst performer of the Dow in 2017 (down almost 35%), and the picture looks just as bad when you widen the lens.

(Source: Nasdaq)

My thoughts about GE as a long-term investment have been well-documented here on Seeking Alpha, so instead of trying to prove my bull case, I want to spend some time looking strictly at the numbers. However, at the end of the article, I will explain why I still consider this storied industrial conglomerate a long-term buy.

A Look At GE, By The Numbers

As described in this article, GE reported Q3 2017 results that left investors wanting more. The company reported Q3 2017 adjusted EPS of $0.29 on revenues of $33.5B, which was a bottom-line miss but a top-line beat.

(Source: Q3 2017 Earnings Presentation)

In addition to reporting poor operating results, the company also reset its full-year 2017 guidance to a range of $1.05-$1.10 (down from ~$1.50). However, as I described above, I want to focus on the numbers in this article, so let's start with GE's top-line growth and industrial margins.

(Source: Data from GE's Q3 2017 Earnings Press Release; table created by W.G. Investment Research)

Note: The Oil & Gas segment was impacted by the Baker Hughes merger, and the Lighting segment now only represents GE Lighting and the Current division (Energy Connections now rolls up to Power).

Observations from the table:

  • GE's top-line grew by 3% YoY with Renewable Energy leading the charge (O&G was aided by the Baker Hughes acquisition).
  • Power was not the only segment that reported poor results for Q3 2017, as there were three other

This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long GE, BHGE, HON. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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