GE loses $9.8 billion, discloses SEC probe
General Electric reported quarterly results on Wednesday that illustrated how far it has fallen, and the steep hill the company – once a titan of American industry – must climb to turn itself around.
There were no big surprises; those had mostly come earlier.
But in a conference call with analysts, GE disclosed that the Securities and Exchange Commission had opened an investigation into the company’s handling of its insurance obligations and how it accounted for certain services contracts. The inquiry was in its “very early stages” and GE was “cooperating fully,” said Jamie Miller, the company’s chief financial officer.
Last week, GE made a startling announcement that it would take a $6.2 billion charge in the fourth quarter, and set aside $15 billion over seven years to pay for obligations held by its finance unit, mainly on long-term care insurance policies.
Throughout the conference call on Wednesday, CEO of GE John Flannery emphasized that despite its current challenges, GE had industrial businesses that were fundamentally strong. Overall, GE reported a net loss of $9.8 billion for the last three months of the year. That included the big charge for insurance obligations and a separate $3.5 billion charge related to the tax law signed at the end of 2017.
Comcast earnings better than forecast
Consumers may be cutting the cord with cable TV providers, but Comcast said Wednesday its high-speed internet and film franchises are providing new sources of growth.
The media and cable giant reported quarterly earnings on Wednesday that beat analyst expectations, and revenue that topped estimates, as the company grew its customer base in high-speed internet and business services, offsetting lost customers in video services.
It also announced plans to increase its dividend by 21 percent and to repurchase at least $5 billion in stock in 2018.
Comcast reported fourth-quarter earnings of $14.99 billion, or $3.17 per share. Earnings, adjusted for pretax gains, were 49 cents per share.
The results beat Wall Street expectations. The average estimate of 17 analysts surveyed by Zacks Investment Research was for earnings of 47 cents per share.
The cable provider posted revenue of $21.92 billion in the period, also topping Street forecasts. Fifteen analysts surveyed by Zacks expected $21.8 billion.
Comcast shares climbed Wednesday by 55 cents per share, or 1.3 percent, to close at $42.99. Comcast shares have climbed 6 percent since the beginning of the year, matching the overall gains in the Standard & Poor’s 500. Comcast’s stock has climbed 16 percent in the last 12 months.
Ford earnings jump in 2017
Ford Motor Co. said its full-year earnings jumped 65 percent to $7.6 billion in 2017 due to tax and pension changes, but it’s already warning that this year will be tougher.
The adjusted earnings, of $1.78 per share, fell just short of Wall Street’s predictions. Analysts polled by FactSet predicted earnings of $1.79 per share.
Ford’s automotive revenue rose slightly to $145.7 billion although its global sales remained flat at 6.6 million cars and trucks. That was higher than the $144 billion analysts had forecast.
Ford warned last week that its earnings will likely fall this year as U.S. sales soften. Ford said it’s also being hit by rising costs for steel and aluminum.
The automaker expects to earn between $1.45 and $1.70 per share this year.