General Electric beats by $0.05, reports revs in-line; reaffirms FY19 guidance (9.73)
- Reports Q1 (Mar) earnings of $0.14 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $0.09; revenues fell 1.8% year/year to $27.29 bln vs the $27.31 bln S&P Capital IQ Consensus. Orders +1 (+9% organic); GE Industrial rev -2%, +5% organic, Industrial profit -12% organic to $2.2 bln; GE Capital rev +2%
- Adjusted Industrial free cash flows (FCF) better than planned, largely due to timing, but also included some improved execution in our Industrial businesses
- Co reaffirms guidance for FY19, sees EPS of $0.50-0.60, excluding non-recurring items, vs. $0.58 S&P Capital IQ Consensus. LSD-MSD Industrial segment organic revenue growth; adjusted Industrial FCF ($2)-0 bln; Adjusted GE Industrial margin ~flat to up ~100bps. Managing uncertainty in several areas... Renewables execution, Power variability... Boeing 737 MAX a new risk.
- Expect Adjusted Industrial FCF to return to positive territory in 2020 & accelerate thereafter in 2021
- "We delivered strong industrial orders in the quarter, up 9 percent organically, with backlog closing at $374 billion, up 6 percent year over year. Our quarterly results were better than our expectations, largely driven by timing of certain items, which should balance out over the course of the year. Therefore, we expect our performance for the year to be in line with our previous commentary.