GE's Stock Slips After Sales Miss Offsets Profit Beat

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of General Electric Co. shed 0.7% in premarket trade Friday, after the industrial giant reported third-quarter sales that fell short of estimates, offsetting a profit that beat expectations. Earnings for the quarter ended Sept. 30 fell to $1.99 billion, or 22 cents a share, from $2.51 billion, or 25 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 32 cents, above the FactSet consensus of 30 cents. Revenue rose 4% to $29.3 billion from $28.0 billion, but missed the FactSet consensus of $29.6 billion, as misses by the power and aviation businesses offset a beat by healthcare. GE said it was increasing its stock buyback program by $4 billion, and narrowed its 2016 operating EPS outlook to $1.48 to $1.52 from $1.45 to $1.55, compared with the FactSet consensus of $1.49. The stock has lost 6.7% year to date through Thursday, while the Dow Jones Industrial Average has gained 4.2%.

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