General Electric beat analyst profit forecasts, but revenue growth remained sluggish, prompting the company to lower its full-year outlook. Jeanne Yurman reports.
General Electric beat analyst profit forecasts in the third quarter, but the company lowered its guidance given sluggish revenue growth. That sent GE shares lower right out of the gate on Friday. GE blamed a drag on its top line on slow economic growth and a pullback in the oil and gas sectors. RBC Capital Markets analyst Deane Dray wrote in his research note: "The bottom line is that GE is holding up relatively well in a slower-growth macro, in our view. (...) Industrial revenues that came in below our estimate, lowered guidance for organic growth, and commentary about 2018 that does not mention a $2 EPS target, but no one should be surprised that the 2018 bridge is now highlighting oil & gas end market pressures." Analysts had been looking for GE to report stronger revenue growth after a weak first half, but faced a 25-percent slump in oil and gas revenue in the quarter.