General Electric Earnings Review: It’s All Good

General Electric Company (GE) is one of the largest industrial conglomerates in the world. It operates in eight different categories: power and water, oil and gas, energy management, aviation, healthcare, transportation, home and business solutions, and GE Capital.

GE Industrial’s business cycle is divided into three phases – receiving orders and building a backlog in the first quarter, core growth in the second and third quarters, and margins in the fourth quarter.

On October 18, 2013, GE announced its 3Q13 financial results with revenues of $35.7 billion, a decline of 1.5% Year-over-Year (YoY), and EPS of $0.40 (excluding restructuring cost and one time charges), which remained flat. GE Industrial posted revenues of $25.3 billion, up 2% YoY, whereas operating margins expanded by 120 basis points (bps). On the other hand, Q3 results show that the company is on track in terms of winding down its GE Capital segment. GE Capital’s revenues declined 5.4% YoY to $10.64 billion.

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General Electric Company Description

The General Electric Company is one of the largest industrial conglomerates in the world, operating in eight different segments – Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. GE Industrial accounts for more than two thirds of the company’s total revenues. The Aviation segment is one of its fastest growing divisions with a five-year revenue CAGR of 3%. GE Capital is primarily engaged in businesses like Consumer Real Estate, Energy Financial Services, GE Capital Aviation Services, GECC Corporate Items & Eliminations and Consumer Lending & Leasing. From 2007 to 2012, GE’s revenues have grown at a compound annual growth rate (CAGR) of -3.1%. Read More: GE