Earnings Report: General Electric (GE) lives up to its word
Today's Financial News - Posted October 10, 2008
Wall Street is afraid to crawl out of bed this morning. With yesterday’s huge plunge fresh in their mind, investors are looking for any excuse to stay out of the equities market. Has General Electric (NYSE:GE) given them a reason to change their mind?
By Andrew Snyder
Baltimore – (TFN): The equities market is overflowing with rumors, bad news, and speculation of pain to come. Yesterday’s huge drop hurt and it may continue for at least part of the day today. But there is a glimmer of hope.
Dow-component and mega-conglomerate General Electric (NYSE:GE) announced its quarterly earnings before the sun rose on Manhattan. Although the estimated figures were revised just a few weeks ago by the corporation, Wall Street breathed a sigh of relief when the company met its forecasted earnings.
GE posted profits of just over $34 billion during the third quarter, a drop of 22% from this time last year. On a per share basis, the company earned $0.45. It was almost exactly in-line with analyst expectations. It is good news, but not a huge surprise by any means.
On September 25, GE’s executives drastically cut the firm’s Q3 earnings estimates and promised its new figures would be accurate. Fortunately, the accountants kept to their word and the Street is not dealing with any big surprises this morning.
Still some strength left
One interesting note in GE’s report is the profit it made in its massive financial division. Even with some of the nation’s largest banks going belly up, GE managed to earn $2 billion from banking operations. The figure is down over 30% from this time last year, but it is proof the company’s balance sheet remains strong.
Today will likely be another haywire day for the Dow. With volatility indexes at laughable levels, wide swings are not only possible, they are highly probably.
Thanks to strongholds like General Electric, we will be through this mess before too long.
Next Article: Cancel Christmas! Crash will squeeze economy… and create opportunity for legacy wealth
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October 11th, 2008 at 8:41 am
GE's strengths over its 127 year history has been its ability to set and meet realistic expectations and adapt to change. Immelt and his team have demonstrated both this week and if they continue to focus, reduce complexity and not get enamored with GOING BIG, the company and his key stakeholders will again become winners and the company will become the “safehaven” it should be.
Bill Rothschild, author of THE SECRET TO GE's SUCCESS, the most comprehensive and objective analysis of why GE has prospered and what we can learn from it…now in six languages.