What Helped General Electric Beat Its 1Q16 Earnings Expectations? PART 2 OF 10
Forex Translations Impact General Electric's 1Q16 Revenues
General Electric's 1Q16 revenues at a glance
General Electric's (GE) 1Q16 revenue stood $27.8 billion, nearly 0.7% below the market consensus of $28.0 billion. Revenue for the quarter decreased 5.4% when compared to $29.4 billion in 1Q15. In 1Q16, unfavorable foreign exchange translations affected revenues.
General Electric (GE) is undergoing a transformation, as it plans to substantially reduce its dependence on the financial services (XLF) business and refocus on the traditional industrial (XLI) segment. GE's 1Q16 earnings carry a special significance in regards to its capital exit plans, whether the company backs fiscal 2016 guidan ce, and its outlook on the macro scenario.
Of the capital exits worth $166 billion, GE is ahead of plan, as it has closed $146 billion as of the end of 1Q16. In the prevailing and volatile environment, GE has reaffirmed its target for 2016 earnings of $1.45–$1.55 per share.
GE's large-capitalization peers are 3M (MMM), Honeywell (HON), and Illinois Tool Works (ITW). HON and ITW announced their results on April 22 and April 20, 2016, respectively. MMM results will be out on April 26, 2016.
HON's 1Q16 revenues stood at $9.5 billion, up 3.4% when compared to $9.21 in 1Q15. ITW's 1Q16 revenues stood at $3.27 billion, down 2.0% when compared to $3.3 billion in 1Q15. MMM's 1Q16 revenues are expected to be $7.3 billion, down 3.5% as compared to $7.31 billion in 1Q15.
We'll look at General Electric's 1Q16 segment revenues in the next part.