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General Electric Q2 Profit Beats, but Revenue Falls Short (GE)

Posted: 7/16/2010 8:24:00 AM
Referenced Stocks: GE

Multinational manufacturing conglomerate General Electric Company ( GE ) on Friday posted a better-than-expected second quarter profit, but its revenue fell short of analysts' view, sending its shares lower in premarket trading.

The Fairfield, CT-based company reported a second quarter profit of $3.03 billion, or 30 cents per share, compared with $2.61 billion, or 27 cents per share, in the year-ago period.

Revenue fell 4.3% from last year, to $37.44 billion.

On average, Wall Street analysts expected a smaller profit of 27 cents per share, albeit on higher revenue of $38.37.

CEO Immelt noted in a statement that "GE's economic environment continues to improve." Investors weren't as optimistic on the stock, however - GE shares fell 19 cents, or -1.3%, in premarket trading Friday.

The Bottom Line
We recently removed shares of GE from our recommended list back on June 8, when the stock was trading at $15.41. The company has a 2.62% dividend yield, based on Friday's closing stock price of $15.25. The stock has technical support in the $13 price area. If the shares can firm up, we see overhead resistance around the $16-$17 price levels. We would remain on the sidelines for now.

General Electric Company ( GE ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .