General Electric released its first quarter earnings report before opening bell this morning, posting earnings of 21 cents per share on $27.6 billion in revenue. Analysts had been expecting earnings of 19 cents per share and $28.2 billion in revenue.
General Electric swings to profit
GE’s reported earnings were 2 cents per share, compared to last year’s losses of 45 cents per share. The company’s Industrial segments recorded 2 cents per share in negative impacts from currency exchange. The Industrial segment’s organic revenues declined 1% year over year, although management is leaving its framework at a 2% to 4% gain as they expect to log higher power shipments in the second half of the year.
General Electric saw a 1% increase in orders but a 7% decline organically. Services grew 4% organically, while the Power segment surged 25% year over year. GE’s Renewable Energy business skyrocketed 88% in the first quarter, while GE Digital orders grew 29% to $1.2 billion. The company had a backlog of $316 billion, an 18% increase year over year or 7% excluding Alstom, which had an impact of losses of 1 cent per share. General Electric said Alstom is on track to deliver earnings of 5 cents per share this year, however.
GE Capital signed $166 billion in asset sales and closed $146 billion, which puts the company ahead of management’s plan. General Electric reported that Verticals are performing well, contributing 5 cents per share in earnings and growing 67% in the first quarter.
Highlights on first quarter deals
The company took six orders for six HA turbines in the U.S. and shipped four turbines. It has a backlog of 35 orders as well. In Renewable Energy, General Electric received more than 1,550 megawatts of orders for onshore wind, and in Healthcare, the company saw an 8% increase in U.S. equipment orders. China orders grew 11%, while Bioprocess orders increased 7%, excluding currency exchange.
GE Capital had a 14.5% Tier 1 Common Ratio at the end of the quarter and paid dividends of $7.5 billion to the parent company in the first quarter.
General Electric shares edged lower by 0.87% to $30.71 in premarket trading this morning.
