GE Posts Q4 Loss, Revenue Misses View

(RTTNews) - General Electric (GE) reported a loss for the fourth-quarter, compared to profit in the prior year, reflecting charges for insurance-related items, the Tax Cuts and Jobs Act, and industrial portfolio items. Quarterly revenues declined 5% from the previous year. Revenues missed analysts' estimates.

GE Chairman and CEO John Flannery said, "In the fourth quarter, EPS was at the low-end of guidance, excluding insurance-related items, U.S. tax reform, and industrial portfolio actions. Cash performance was above expectations and our visibility and execution on cash is improving.....….The team is focused on operational execution, capital allocation and deep cost reduction to position us for continued improvement in 2018."

In the Wednesday, pre-market, GE is trading at $17.21, up $0.33 or 1.95%.

Net loss attributable to common shareowners for the fourth-quarter of 2017 were $9.83 billion or $1.13 per share, compared to earnings of $3.49 billion or $0.39 per share in the prior year.

Industrial Operating + Verticals loss was $1.23 per share, compared to profit of $0.46 per share in the previous year.

Industrial operating + Verticals earnings, excluding the fourth-quarter charges not included in prior guidance, were $2.33 billion or $0.27 per share compared to $4.08 billion or $0.46 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Industrial + Verticals earnings were at low end of guidance excluding $1.49 of charges for insurance-related items $0.91, the Tax Cuts and Jobs Act $0.40, and industrial portfolio items of $0.18.

Total revenues and other income for the quarter declined 5% to $31.40 billion from last year's $ 33.09 billion in the prior year. Wall Street expected revenues of $34.06 billion for the fourth-quarter.

Separately, Baker Hughes, a GE company (BHGE), reported that its fourth-quarter revenue was $5.8 billion, up 7% sequentially and down 3% year-over-year on a combined business basis. GAAP net loss per share of $0.07 for the quarter, which included $0.22 per share of adjusting items. Adjusted earnings per share were $0.15.

Baker Hughes's Orders were $5.8 billion for the quarter, up 1% sequentially and down 2% year-over-year on a combined business basis.