Diversified conglomerate General Electric Co. (GE) Friday reported a higher first-quarter profit, reflecting mainly a gain from sale of its remaining equity stake in NBCUniversal joint venture. Revenues were flat with last year. Both operating earnings per share as well as revenues topped analysts' expectations.
The company said this is its twelfth consecutive quarter of strong operating earnings growth. It experienced profit growth in five of its eight businesses.
Chairman and CEO Jeff Immelt stated, "...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...Our overall framework for the year remains unchanged."
The Fairfield, Connecticut-based GE, which makes jet engines and turbines, said its equipment orders climbed 10 percent form last year, with Oil & Gas orders increasing 24 percent, and Aviation up 47 percent.
Total infrastructure orders for the quarter rose 3 percent to $23.8 billion, and Infrastructure order pricing rose 0.6 percent from last year. GE's backlog of equipment and services at the end of the quarter was $216 billion.
In the first quarter, net earnings attributable to the company increased 16 percent to $3.53 billion from $3.03 billion in the previous year. On a per share basis, earnings were $0.34, higher than $0.29 per share in the same quarter last year.
Earnings from continuing operations were $0.35 per share, compared $0.30 per share a year ago.
In February, Comcast Corp. (CMCSA, CMCSK) agreed to acquire GE's entire 49 percent common equity stake in the NBCUniversal joint venture for about $16.7 billion. Gains from the sale of GE's remaining stake in NBCUniversal were $0.04 per share above the cost of Industrial restructuring and other charges.
Operating earnings, a non-GAAP measure, were $4.06 billion or $0.39 per share in the recent quarter, while the company posted $3.57 billion or $0.34 per share last year.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues and other income for the quarter slightly declined to $35.01 billion from $35.08 billion in the prior-year quarter, but came in above analysts' consensus estimate of $34.63 billion.
Industrial sales revenues were $22.3 billion, down 6 percent from last year. GECC revenues rose 2 percent to $11.5 billion.
Earlier this month, GE agreed to acquire oil and gas equipment firm Lufkin Industries Inc. (LUFK) for about $3.3 billion. GE said the deal will help it to further expand its oil and gas' artificial lift capabilities beyond electric submersible pumps.
GE closed Thursday's regular trading at $22.67 on the NYSE. In the pre-market activity, the shares are down 3.13 percent.
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