Shares in GE (NYSE:GE) fell today after the conglomerate met sales expectations but missed on earnings per share by a significant margin, though its healthcare biz saw both sales and profits grow for the 3rd quarter.
GE Healthcare posted profits of $820 million on sales of $4.7 billion for the 3 months ended September 30, clocking gains of 14.4% and 5.4%, respectively, compared to its performance during Q3 2016.
Overall, GE posted profits of $1.8 billion, or 21¢ per share, on sales of $33.5 billion for its 3rd quarter, with profits shrinking 9.4% while sales grew a healthy 14.4% compared to the same quarter during the previous fiscal year.
Adjusted to exclude 1-time items, earnings per share were 29¢, well behind Wall Street analyst’s consensus of 49¢ per share, though the company topped the sales consensus of $32.6 billion.
“This was a very challenging quarter. While a majority of our businesses had solid earnings performance, this was offset by a decline in power performance in a difficult market. Our industrial CFOA for the quarter was down principally because of lower power volume, resulting in lower earnings and higher inventory. We believe that the new leadership team at power and the cost actions that we are taking will better position the Company in 2018 and beyond. Throughout our 125-year history GE has been known as a company that combines innovation and technology with execution intensity to produce outstanding results for our customers and shareowners. We are focused on redefining our culture, running our businesses better, and reducing our complexity. I look forward to meeting with investors in November to update them on our progress,” CEO John Flannery said in a press release.
GE shares have dropped 2.7%, down 63¢ as of 10:21 a.m. EDT.