Expert Sees Mixed Q3 Results From General Electric As A Great Report
General Electric (NYSE: GE) Q3 net profit dropped by 8.6 percent, down to $3.2 billion in profits from $3.5 billion at the end of last year's Q3.
Revenue also fell 1.5 percent, down to $35.7 billion under analysts' estimations of $35.96 billion. That doesn't mean that there isn't a whole lot of good in GE's report for the quarter, as Principal and Senior Advisor at Harbor Advisory Jack De Gan explained on CNBC's Squawk Box Friday morning.
"This is a great report," said De Gan.
De Gan is excited about the report's results, considering both the total of the conglomerate's news is more positive than negative in what was a mostly a mixed Q3. He even likes the revenue results.
"That's a real good revenue number in light of taking down ending net. Ending net investment in capital was $391[billion] last quarter, I thought it would go to $375 [billion]. It probably went lower if that's what they're telling us, and that's, that's a real good reason for a revenue shortfall. Next quarter revenue is going to be up year over year for the first time since, ah, since '08, so you know, we're finally done with the revenue decreases, but um, orders were great, industrial margin expansion, that was much better than expected," said De Gan.
GE highlighted their record backlog of orders in their report, with earnings rising in six out of seven of their industrial businesses on Q3.
"So this is a good report. It will move the stock. Um, I'm expecting a dividend increase…and it should be about 10 percent from [$0.19] to [$0.21]," said De Gan.
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