Early on Friday, General Electric Company (GE) reported a rise in first quarter income on slightly lower revenues, with both figures topping analysts’ estimates. However, the report failed to impress Wall Street, as shares were down in pre-market trading.
The Fairfield, Connecticut-based company said its first quarter earnings came in at $3.53 billion, or 34 cents per share, up 17% from $3.03 billion, or 29 cents per share, earned in the same quarter last year.
Operating earnings in the first quarter rose to $4.06 billion, or 39 cents per share, up from $3.57 billion, or 34 cents per share, last year. According to analysts polled by Thomson Reuters, this topped the 35 cents per share expectation.
Total revenues fell slightly to $35.01 billion from $35.08 billion last year. Analysts were expecting the company to see $34.63 billion in revenues.
In the quarter, GE finally sold its remaining stake in NBC Universal to Comcast (CMCSA) for $16.7 billion. Also helping revenues were a 47% in aviation equipment orders and an increase in gas and oil equipment sales.
However, weakness in Europe strained overall profits in the quarter. Regardless, CEO Jeffery Immelt seemed optimistic going forward.
“Despite the challenging macro environment, GE is well- positioned for stronger performance for the remainder of the year and we are executing on our strategic priorities,” Immelt said.
GE shares were down 57 cents, or -2.51%, during pre-market trading on Friday. The stock is up +8% year-to-date.
The Bottom Line
Shares of General Electric (GE) have a dividend yield of 3.35% based on last night’s closing price of $22.67 and the company’s annualized dividend payout of 76 cents per share.
General Electric Company (GE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.