Tuesday, April 26, 2016

Forex Translations Impact General Electric’s 1Q16 Revenues

What Helped General Electric Beat Its 1Q16 Earnings Expectations? PART 2 OF 10

Forex Translations Impact General Electric's 1Q16 Revenues

By Jessica Stephans  | Apr 26, 2016 5:34 pm EDT

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.

Forex Translations Impact General Electric's 1Q16 Revenues

General Electric (GE) is undergoing a transformation, as it plans to substantially reduce its dependence on the financial services (XLF[1]) business and refocus on the traditional industrial (XLI[2]) 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[3]), Honeywell (HON[4]), and Illinois Tool Works (ITW[5]). 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.

References

  1. ^ XLF (marketrealist.com)
  2. ^ XLI (marketrealist.com)
  3. ^ MMM (marketrealist.com)
  4. ^ HON (marketrealist.com)
  5. ^ ITW (marketrealist.com)


Download NowSource


Forex Translations Impact General Electric’s 1Q16 Revenues Rating: 4.5 Posted by: Unknown

0 comments:

Post a Comment

Blog Archive