General Electric Q2 Profit Beats Expectations, Shares Gain

Shares of General Electric Company GE climbed over 2 percent in pre-market trading after the company reported stronger-than-expected earnings for its second quarter. The Fairfield, Connecticut-based company reported a quarterly loss of $1.36 billion, or $0.13 per share, versus a year-ago profit of $3.55 billion, or $0.35 per share. Excluding certain charges, the company's adjusted operating EPS came in at $0.31 per share. Its revenue rose 2 percent to $32.8 billion. However, analysts were expecting earnings of $0.28 per share on revenue of $28.7 billion. Its total industrial revenue came in flat at $26.9 billion, while operating profit rose 5 percent during the quarter. The average estimate among 59 Estimize users was for earnings of $0.34 per share and revenue of $30.03 billion. Jeff Immelt, Chairman and CEO said, "GE had a strong second quarter, with good industrial organic growth and exceptional cash generation. The environment remains one of slow growth and volatility, particularly in growth markets, while the U.S. is gradually improving. Our industrial businesses had another quarter of strong EPS growth of 18% and orders up 8%. We continue to execute on our plan to exit GE Capital, with $68 billion in dispositions announced this year, and are on track for our goal of closing $100 billion in 2015." GE lifted its FY15 forecast for industrial operating earnings to $1.13 to $1.20 per share. The company also said that GE Capital Verticals EPS is on track for $0.15. GE shares rose 2.40 percent to $27.69 in pre-market trading.