General Electric’s (GE) Third Quarter Earnings Light Up Its Stock
Shares of diversified industrial conglomerate General Electric (GE) rallied recently, after the company reported its third quarter earnings. GE reported adjusted earnings of $0.36 per share, topping analyst expectations by a penny. Revenue rose 1.5% to $35.7 billion, which fell short of the $36.0 billion that analysts had expected. Daily Chart
However, what caught investorsâ attention was a record backlog of orders, indicating robust demand ahead.
General Electricâ s backlog, which included a wide range of products ranging from jet engines to turbines, rose 13% year-over-year to $229 billion. Equipment orders of aviation products almost doubled from the prior year quarter, and transportation equipment orders surged 65%. GE highlighted a $600 million order for turbo-machinery equipment in Russiaâ s Yamal liquefied natural gas project, and an order from Air Asia for 528 engines. Meanwhile, revenue rose at six out of seven of its industrial businesses. The company also presented a positive outlook for the rest of the year, stating that it was on track to expand profit margins. GE stated that it would reach its target of expanding its operating profit margin for its industrial business by 0.7% to 15.8% this year. Harbor Advisory Corp.â s Jack Degan noted, â
Published on Oct 25, 2013
By Leo Sun