On October 30, General Electric Company released the third-quarter results. Thanks to this data General Electric’s shares increased by11.5%. It is essential to mention that it was the second-best day of trading in 2019.
The company’s adjusted third-quarter earnings and revenue exceeded the market expectations.
GE shares increased and nearly reached $10.11 a share. Let’s compare the results from the third-quarter with market expectations.
According to the forecasts, earnings per share would reach 11 cents. Nevertheless, GE earning per share reached 15 cents. Furthermore, GE also surpassed market expectations regarding the revenue. Analysts predicted that revenue in the third quarter would reach $22.93 billion. GE exceeded the market expectations as revenue reached $23.36 billion.
GE and stocks
It does not mean that the company solved all of the problems. One of the significant issues which affected the company is the net loss. In the third quarter, GE reported a consolidated net loss of $9.5 billion. The net loss in comparison with the third quarter of 2018 fell from $22.8 billion to $9.5 billion.
Another problem is GE’s power division. The quarterly revenue fell by 14% year over year. It means that revenue fell from $4.6 billion to $3.9 billion. The orders for the turbines and other products declined by 30%.
GE reported that its power division lost $144 million in the third quarter. It is an interesting fact that despite this loss this result is still better than in the third quarter of 2018. It means that in the third quarter of 2019 division’s loss was 79% lower than in 2018.
GE’s other division, which is the aviation business achieved excellent results. The revenue increased by 8%, and in the third quarter, the company’s aviation division recorded $8.1 billion.
It is worth mentioning that GE is producing LEAP engines that are used on Boeing 737 Max. GE sold 455 LEAP engines in the third quarter of 2019. The General Electric Company continues to sell LEAP engines despite the fact that 737 Max remains grounded for several months.