GE Analysis: Dow Earnings

BOSTON (TheStreet) -- General Electric (GE) has reported quarterly results.

Quarterly Synopsis: GE posted fourth-quarter earnings from continuing operations of $3.9 billion, or 36 cents a share, a 33% increase from the year-earlier tally. Revenue increased to $41 billion, marking the first quarter of growth in the past nine. Energy infrastructure orders climbed 4% and total quarterly orders jumped 12%. The backlog widened to a record $175 billion, signaling pent-up demand. GE Capital also posted solid numbers, achieving $1.1 billion of profit, a 10% increase, with volume up 30%. Losses and impairments fell by $300 million.

Earnings Performance: GE posted 36 cents of adjusted earnings, exceeding analysts' consensus forecast by 13%. By comparison, GE has an average earnings beat rate of 4.2%. Its top-line of $41 billion beat expectations by 3.4%. By comparison, GE has an average sales beat rate of 0.3%. GE's stock jumped more than 5% in reaction to the report. In addition to the unexpected sales growth, 6% organic growth in GE's industrial segment is being lauded as a report highlight. New infrastructure projects in emerging markets could provide a near-term tailwind.

Dividend Information: GE pays a quarterly dividend of 14 cents, equivalent to an annual yield of 3.1%. The payout has fallen from a high of 31 cents, last paid in 2009. But, GE has boosted its dividend in each of the past two quarters. A 43% payout ratio indicates safety.

Analyst Opinions: Currently, 10 analysts advocate purchasing GE's stock and nine recommend holding it. No analysts advise selling. The stock has a median target of $21.45.

UBS, Buy, $23 Target
Goldman Sachs, Buy, $22 Target
Credit Suisse, Outperform, $22 Target
JPMorgan, Overweight, $21 Target
Citigroup, Buy, $20 Target
Barclays, Overweight, $20 Target
Blockbuster Timeline

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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