General Electric (GE) is living out its old motto, “We Bring Good Things to Light,” at least for investors.David Paul Morris/Bloomberg
GE’s shares are heading higher today after blue-chip conglomerate reported earnings of 40 cents a share, ahead of forecasts for a 35 cent profit. Profits fell 8.6% during the quarter, but that was largely due to weaker financial revenue–an area that GE has been trying to reduce its exposure too (also the businesses that helped GE beat earnings over and over again during the 2000s).
These earnings were all about GE’s industrial lines. Citigroup’s Deane Dray explains:
The Industrials-driven beat, high quality of earnings absorbing more restructuring, impressive order growth, and reaffirmation of the 2013 earnings framework should drive a low to mid single-digit positive reaction in GE shares on Oct-18. Skepticism of the 70 bps Industrial margin expansion target was rampant into earnings and the +120 bps in 3Q and reaffirmation of the 2013 target is a positive surprise.
Shares of GE have gained 3.5% to $24.54 at 1:08 p.m. today. United Technologies (UTX) has dropped 0.6% to $107.37, Koninklijke Philips (PHG) has gained 0.8% to $33.40, Siemens (SI) has risen 1.5% to $124.40 and 3M (MMM) has ticked up 0.1% to $122.75.