GE (GE) hit Wall St.’s EPS forecast at $.54 and beat revenue estimates coming in at $46.9 billion above the $45.3 billion concensus.
The revenue increase was 11% over the same quarter last year. GE also reaffirmed its EPS forecast for the year at $2.20 to $2.30.
The company’s powerful infrastructure group had a 24% increase in segement profit. The number was amazing give the unit’s size. Its revenue for the quarter was $17.6 billion.
GE’s commercial financial unit pulled its weight with segment profit up 7% to $1.4 billion. Revenue for the business was $6.6 billion. Healthcare had moderate results with segment profit rising to $747 million up 8%.
NBC Universal made a significant case that it should not be part of the company as it continued to be a drag on earnings. Its revenue rose 7% to $3.9 billion, but segment profit moved up only 1% to $909 million. While GE’s industrial unit continues to do poorly with segment profit down 32% to $300 million, it is at least likely to be spun-off.
The NBC Universal number bolster the argument that old media is no place for GE to be. The recent results from companies like CBS (CBS) and News Corp (NWS) have been modest. A recession is likely to hit advertising revenue hard.
GE won’t have much credibility on Wall St. while it holds it NBCU assets.
Douglas A. McIntyre
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