General Electric reported earnings that beat on the bottom line but whiffed on the top line.
Earnings per share came in at 31 cents excluding items, just beating the estimate by one cent.
Revenues fell 12% to $US29.4 billion and excluding the impact from the GE Capital spinoff, revenues fell 3% to $US33.1 billion.
The spin off of GE Capital impacted EPS by 6%, the company said. GE Capital revenues fell 39% to $US5.98 billion.
CEO Jeff Immelt said in the release: “We have laid out a clear plan to reshape GE for the future. We will reduce the size of our financial business through the sale of most GE Capital assets over the next 24 months, with the potential to return more than $US90 billion to investors in dividends, buyback and the Synchrony exchange through 2018. Our industrial businesses are performing well and we will continue to invest in our competitive advantages built on the GE Store.”
Shares fell by up to 1% in pre-market trading.
Last Friday, the company announced that it’s selling the bulk of its GE Capital assets. The company will sell most of its real estate portfolio worth around $US26 billion to buyers including Wells Fargo and Blackstone. It also said it plans to buy back about $US50 billion worth of shares.