General Electric Co. (NYSE: GE) reported its first quarter financial results, topping Wall Street’s estimates and reiterated its outlook for the fiscal year. Shares rose by 6 percent during Friday’s pre-market hours.
For the first quarter, GE reported revenue of $28.66 billion, increasing 6.6 percent year over year and topping Thomson Reuters’ estimates of $27.45 billion. The company reported an EPS of $0.16, beating Thomson Reuters’ estimates of $0.11.
The strong quarter was driven by strong performances in GE’s aviation, healthcare, renewables and transportation segments, but the power & oil and gas segments partially offset, as GE said they continue to be a challenge.
Renewable energy, aviation, healthcare and transportation segments saw profit grow by double digit percentages year over year. GE’s power segment profit were down 38 percent year over year, which is supposed to be the company’s primary profit driver. Oil & gas profits were down 30 percent.
“The first quarter is a step forward in executing on our 2018 plan and we are seeing signs of progress in our performance. Industrial earnings, free cash flow, and margins all improved year over year. We reduced Industrial structural costs by $805 million and are on track to exceed our cost reduction goal of $2 billion in 2018.” said GE Chairman and CEO John Flannery.
Flannery said in the earnings transcript that GE is working to resolve matters from discontinued operations. The company has reserved $1.5 billion related to the WMC FIRREA investigation.
“We are making significant progress on the $20 billion of dispositions planned for 2018 & 2019. There is no change to our framework for 2018.” concluded Flannery.
Even though GE saw its shares surge on Friday, shares are still down 52 percent year over year, still one the worst performers among Dow components.