General Electric Q3 Profit Beats Views

On Wednesday, Synchrony Financial (SYF), the largest provider of private label credit cards, received approval from The Federal Reserve Board to become a standalone savings and loan holding company.

The Fairfield, Conn.-based company said profit fell 29 per cent to $2.51 billion, or 25 cents per share.

Analysts polled by Thomson Reuters had forecast per-share operating earnings of 26 cents and revenue of $28.57 billion. Synchrony has built itself into the 36th-largest depository organization in the US, the Fed has said.

The Power & Water segment reported revenues of $6.46 billion with 1% YoY growth and its transportation segment also reported revenues of $1.59 billion, up 3% YoY.

General Electric (GE) on Friday delivered quarterly earnings that surpassed analysts’ expectations, as its businesses producing jet engines and power turbines offset declines in its oil and gas segment, but revenue fell short of estimates. The company also backed its earnings guidance for the year. The conglomerate reported adjusted diluted (operating) earnings per share (EPS) of $0.32 on revenues of $31.68 billion.

GE said Friday in a statement. The largest change involves selling most of GE Capital’s assets, along with $26.5 billion in real estate assets. “You can see it in multiple cost reduction ways, from equipment margins to overall margins, and I think that’s critical”, Winoker said.

“Our GE Capital exit plan is ahead of plan and we expect GE Capital dividends to the parent of around $3bn for 2015”.

GE said it expects to launch a share exchange for Synchrony next week, which will allow it to significantly reduce the amount of GE stock outstanding.

“This week we announced the sale of US$30 billion of commercial lending businesses, bringing our total signed deals to date to US$126 billion”. That initiative, along with the dividend from GE Capital, puts the company on track to return about $30 billion to shareholders in 2015, it added.

GE shares have climbed 11 per cent since the beginning of the year, while the Standard & Poor’s 500 index has dropped roughly 2 per cent. The stock has increased 15 per cent in the last 12 months.