GE tops 1Q targets

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GE tops 1Q targets

Revenue, earnings of diversified conglomerate higher; raises lower end of '05 EPS guidance.

April 15, 2005: 8:28 AM EDT

NEW YORK (CNN/Money) - General Electric reported improved first-quarter earnings Friday that beat Wall Street expectations.

The diversified conglomerate, whose businesses include financial services, media and manufacturing, earned $4.0 billion, or 38 cents a share, up from $3.2 billion, or 32 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call had forecast EPS of 37 cents.

GE (Research) reported revenue of $39.8 billion, up 19 percent and topping the First Call forecast of $38 billion.

The company also raised the lower end of its full-year earnings per share guidance, saying it expects to earn between $1.78 to $1.83, compared with the former target of $1.76 to $1.83. Analysts are now forecasting full-year EPS of $1.81.

In its presentation to investors, GE said it expects second-quarter earnings between 42 and 44 cents a share, with revenue of $41 billion to $42 billion. The earnings guidance is roughly in line with the consensus forecast of 43 cents a share, while the revenue would be roughly at or above analysts' forecast of $40.9 billion.

"GE is off to a terrific start in 2005," said a statement from GE Chairman and CEO Jeff Immelt. "Our businesses and our end-use markets are seeing continued strong growth."

The company's gains were broad based, as nine of its 11 divisions posted revenue growth of 10 percent or more and only the energy and insurance segments saw earnings declines.

It said it posted 10 percent growth excluding acquisitions and changes in currency exchange rates, which the company said topped its target of 8 percent growth in that measure.

The company said it has been able to raise prices to deal with rising commodity prices.

"We are on track for double-digit growth in earnings and cash flow in 2005 and beyond," said Immelt's statement.