General Electric Company (NYSE: GE ) reported a strong earnings for the second quarter this morning and shared plans for an IPO of its credit card unit.
Overall, revenue was up 3% to $37.2 billion on the back of strong power & water and oil & gas revenue, up 10% and 20%, respectively. CEO Jeff Immelt has spent billions of dollars increasing exposure to energy markets, and those bets are beginning to pay off. Segment profit was up 4% to $5.9 billion, and operating earnings per share were up 8% to $0.39, hitting Wall Street's estimate.
The performance of power and energy units is important because Immelt is trying to reduce GE's exposure to financials, as demonstrated by the planned IPO of the company's credit card unit. GE plans to offer 125 million shares of the spinoff called Synchrony Financial for $23 to $26 per share, although it will keep about a $17 billion stake.
Increasing GE's exposure to industrial markets versus financials appears to be the right move, especially when you consider the growth of domestic energy in recent years. The turbine business, which is benefiting from an increase in aircraft orders, is also doing well at the moment. For investors looking for a steady company with a solid dividend, GE is one of the best on the market.