GE CEO John Flannery. Source: industryweek.com.
General Electric (NYSE:GE) reports Q3 earnings Friday. Analysts expectrevenue of $32.56 billion and EPS of $0.49. The revenue estimate implies 10% growth sequentially, yet Q2 results might have been negative impacted by one-time items. Investors should focus on the following key items:
Will Baker Hughes Ignite Oil and Gas?
GE is known as an industrial powerhouse. Its foray into oil and gas amplified its exposure to another cyclical business. GE built its oil and gas portfolio via $10 billion in acquisitions. After oil prices fell from their Q2 2014 peak the segment suffered. Revenue from oil and gas fell 3% Y/Y in Q2, compared to a 2% decline for GE's total industrial segments.
