Heavy is the head that wears the crown. And when you're a company with a $200 billion market cap already, it seems it takes a lot to move the needle. On Friday, General Electric
- Profits were up 21% to $0.35 per share.
- Infrastructure orders were up 24%.
- Revenues were down 3.5%, but only because GE unloaded its NBC Universal stake on Comcast
last year. But for that, revs would have risen 7%. (Nasdaq: CMCSA)
- GE displayed lesser reliance on the finicky and problem-plagued GE Capital business, where revenues declined modestly.
- And greater reliance on GE's industrial core, where contract wins for the firm's LEAP-X jet engine at Boeing
and Airbus helped push the backlog of future business to a record $189 billion. (NYSE: BA)
Meanwhile, the firm's ballyhooed assault on the energy sector is bearing great fruit, with CEO Jeff Immelt promising 17% unit volume growth this year, versus 2010. Across the company, Immelt told investors to expect accelerating sales and earnings growth through 2011 and into 2012. But how did investors react to all this good news?
They sold off GE by nearly half a percent.
What more do you want?
I think the trouble with GE -- and investors' lack of response to its blowout earnings -- is that it's just too big for investors to wrap their brains around. I mean, these guys sell lightbulbs, LEAP-X engines, refrigerators, and nuclear reactors. They dabble in electric cars ... and consumer credit.
The structure goes beyond eclectic. It's downright complicated. So let me boil this down to the essentials: Over the past six months, GE earned $7.2 billion -- 44% more than in H1 2010. Its operating margin now eclipses that of Siemens
I don't know about you, but GE looks cheap to me.
Rich Smith does not own shares of, nor is he short, any company named above. The Motley Fool owns shares of Textron. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
General Electric Stock Plummeted 44.8% in 2017: Here's What You Should Do
After General Electric's massive fall in 2017, is staying invested in the stock a risky bet or an opportunity?
What to Expect From General Electric Company in 2018
The industrial giant is trying to release value for investors after a difficult year.
3 Top Value Stocks to Buy in January
Are you looking for a bargain in today's pricy market? Start your search with these three stocks.