General Electric Company (GE) Down 1% Despite Earnings Beat

Strength in the divisions that manufacture jet engines and power turbines cushioned the blow from from the rout in prices for crude. The exchange is expected to produce a 6% to 7% reduction in the almost 10.1 billion shares of GE stock outstanding as of June 30.

The shares rallied Friday, reaching the highest in intraday trading since September 2008.

“The Synchrony split is part of GE’s massive retreat from financial services, which began in earnest in April when it said it would divest a few $200 billion worth of its GE Capital financing assets to focus on industrial manufacturing”, Reuters explained.

GE reported third-quarter net earnings fell 29 percent from a year earlier to $2.51 billion, or 25 cents per share.

“From an operational execution standpoint, it was good”, said Nicholas Heymann, a William Blair & Co. analyst who upgraded GE to outperform from market perform this week.

-Earnings Growth (Y-o-Y): 3.8%. “I don’t see any reason why we shouldn’t”.

Over the past year, Portland General Electric Company (NYSE:POR) has issued payments of $0.3 per share to stock holders.

With technological advances leading to more efficient drilling techniques, and production in the USA now contracting, we believe that oil prices will begin to stabilize and that GE’s oil and gas business could positively surprise investors over the next few quarters. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.06.

General Electric Company (NYSE:GE) is a diversified infrastructure and financial services firm.

With those steps in place, GE plans to apply to exit supervision by the Federal Reserve in the first quarter, a move that would allow the company to more aggressively move capital from the sales of its lending unit back to the parent company.

The results come as GE winds down the finance business that once made up around half its earnings in order to focus on its core industrial businesses like aviation, power and health care. Orders at its industrial businesses slid 26%, including a 38% plunge at its oil-and-gas operation. The company has been working hard to reduce the magnitude of its GE Capital financing unit.

Along with Oil & Gas segment, GE’s Energy Management segment revenues also declined 2% YoY with revenues of $1.77 billion, while the Healthcare segment revenues also declined 5% with revenues coming in at $4.2 billion. But the long slump has required serious belt-tightening at GE, and in August the company closed a foundry and cut a few jobs. “In this environment, you can’t miss orders”, he said.

That will continue, Chief Financial Officer Jeffrey Bornstein said in an interview, saying the unit would compete aggressively even as it cuts more cost out.