On July 13, ultimate conglomerate General Electric (NYSE:GE) released earnings for the second quarter ended June 30.
- Its EPS growth of 10% is right where management wants it -- the long-term goal is to hit between 10% and 12% on that line.
- Cash from operations ballooned a very healthy 45%. We don't have a full data sheet, but assuming stable capital spending in the mid-$4-billion range, free cash flow just about doubled over last year.
- Expect the share count to drop even faster soon -- a $14 billion buyback program is to be completed by the end of the year, reducing the number of shares by about 3.4% at today's share price.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$42,316 |
$37,745 |
12.1% |
|
Net Profit |
$5,420 |
$4,946 |
9.6% |
|
EPS |
$0.53 |
$0.48 |
10.4% |
|
Diluted Shares |
10,303 |
10,400 |
(0.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
34.5% |
32.5% |
2.1 |
|
Operating Margin |
15.3% |
15.5% |
(0.2) |
|
Net Margin |
12.8% |
13.1% |
(0.3) |
Margins are the earnings engine.
Balance Sheet Highlights*
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,600 |
$2,235 |
16.3% |
|
Accounts Rec. |
$13,100 |
$12,255 |
6.9% |
|
Inventory |
$12,500 |
$11,579 |
8.0% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Total Debt |
$12,800 |
$10,607 |
20.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$9,709 |
$6,695 |
45.0% |
Free cash flow is a Fool's best friend. GE didn't give us a full cash flow statement at this time, though.
Related Foolishness:
- GE Sticking to Its Guns
- Foolish Forecast: No Static at General Electric
- New Fox President Has an Eye for Quality
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
