(Reuters) - General Electric Co reported a 2.5 percent rise in quarterly profit from continuing operations, as solid U.S. demand for equipment used in energy production offset the effects of a weak European economy.
Revenue rose 2.5 percent to $36.5 billion, but was shy of the average analyst forecast of $36.8 billion. GE shares rose less than 1 percent in premarket trading.
JACK DE GAN, CHIEF INVESTMENT OFFICER, HARBOR ADVISORY CORP, PORTSMOUTH, NEW HAMPSHIRE
“This is a very good release. GE had the perfect opportunity to bring expectations down and blame it on Europe and that would have been the telltale move that would have said ‘OK, GE is beginning to suffer here in this environment’ and they didn’t do that. Their outlook was unchanged and I think that is very significant since their outlook was so strong in the beginning of the year. For them to say, six months later, we’re confident, I think that’s dramatic.”
“Their organic revenue stayed at 10 percent and that’s amazing in this environment.”
CORT GWON, CHIEF STRATEGIST, HUDSONVIEW CAPITAL MANAGEMENT, NEW YORK
“Revenue was a little lighter than expected, even though earnings beat and they had a strong industrial business. GE’s European business was soft, and that’s a concern for a lot of companies this earnings season. How will austerity in Europe impact multinationals? GE is a microcosm for the concerns we’ve having about the global economy.”
TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET MANAGEMENT, NEW YORK
“A lot of companies this quarter had revenues slightly below expectations, which is not surprising given the softness in the global economy. The fact that they were able to once again deliver earnings slightly better than expected is giving the stock a bit of a boost in the pre-market. The fact that GE is able to weather the weakness in the global economy is certainly a positive for the shares going forward.”
“The key I was looking for was significant improvement in finance and energy and we got that. Profits were up 28 percent year-on-year in finance. A big chunk of that, in fact most of it, is a continued recovery in real estate, which we’ve been highlighting. Additionally, energy was up 13 percent year-on-year. I would have liked to have seen maybe a little bit more there, but actually it was in line with what we were thinking and a gradual recovery. No big surprises.”
Reporting by Scott Malone, Ryan Vlastelica and Lynn Adler, Compiled by Tiffany Wu