Results Corner: General Electric:

General Electric in its fourth quarter earnings season has reported excellent numbers which topped most of the analyst’s expectations. When the fourth quarter earnings season began in the beginning of this month, almost all companies of USA were standing at a setback position, investors with lots of hope were being disappointed.

In such times, three or four companies with their unique strategies & public demands in products have been able to show good results & have been capable to earn a good profit; General Electric is one of them.

In the primary assumption of how General Electric has been outstanding in their profit figure in the fourth quarter season, analysts say that the profits have been increased due to the focus and shift of the company in to equipments of oil & gas. The company has also applied some unique strategy to improve its financial business and this helped the company to achieve such good profit margin.

The company’s management feels so confident about the growth in the coming years and some analysts feel that the company may raise its guidance in the coming quarters. In the fourth quarter earnings season, the profits of General Electric Company, as reported, were at $210 billion.

This profit figure is quite a good improvement from what the company made in the third quarter of this financial year. In the previous season, the profit figure stood at 203 billion dollars.

With such market achievements in profits, the CEO of General Electric, Jeff Immelt said- “The outlook for developed markets remains uncertain, but we are seeing growth in China and the resource rich countries.”

In the fourth quarter season the market of US & UK has shown some extra ordinary achievements & also some unique trends. Still, General Electric is being expected to see a marked drawback in the orders as other countries which are rich in resources like China are coming up in the business sector with their strong market policies.

In the financial year 2011, the net income of General Electric was at $3.7 billion, and the earnings per share of the company was 35 cents per share. In the next financial year 2012, the net income of General Electric rose up to 4 billion dollars with earnings per share of 38 cents per share.

The differences may not be huge, but with the strong intimidation of other resource rich countries in the USA & UK market led the market analysts to make less expectation from the company on its profit. Also on the exclusive products and other business, General Electric earned more profit. The shares of the company soared high on the back of this news and they closed up 3 percent at 21.95 dollars per share.

On analyzing the situation of General Electric, analyst of Sanford C. Bernstein, Steve Winoker said- “We do like GE’s strategic direction, execution appears to be improving, earnings are growing, and capital allocation is still sound, However we still question how much you should pay for it.”

I hope you enjoyed our article, \’Results Corner: General Electric\’.

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Category: Finances
Keywords: Dow Jones, United States, ASX, Dollar index, Brent Oil, Gold, Verizon, Asian markets, Earnings