Instant View: GE Q4 revenue misses expectations, shares fall
(Reuters) - General Electric Co's (GE.N: Quote) fourth quarter revenue fell more sharply than expected, hurt by weakness in Europe and unfavorable foreign exchange rates, sending its shares down about 3 percent in premarket trading.
The largest U.S. conglomerate said on Friday that net income from continuing operations rose 0.6 percent to $3.93 billion, or 37 cents per share, compared with $3.90 billion, or 36 cents per share, a year ago.
Profit excluding one-time items was 39 cents a share, a cent above the average analyst estimate according to Thomson Reuters I/B/E/S. Total revenue fell 8 percent to $38.0 billion, below the $40.0 billion analysts had expected.
JACK DE GAN, CHIEF INVESTMENT OFFICER AT HARBOR ADVISORY
CORP IN PORTSMOUTH, NEW HAMPSHIRE
"Revenue was a little light, and that was somewhat surprising. In December GE indicated that it was managing Europe well, now that's what is pointed to for the light revenue. I think that's kind of a weak excuse. I was hoping the reason for the light revenue was because of the capital business.
"So that is a little surprising, but it gives us a chance to buy the stock a little lower, which makes a lot of sense. I think the stock can trade at $21-22 later this year, so its still a good total return."
OLIVER PURSCHE, PRESIDENT OF GARY GOLDBERG FINANCIAL Continued...