So a 15 cent LOSS per share is what happened in Q3, but some pennies got added back to hit the +15 cent per share adjusted earnings beat. One of those was about 8 cents per share for the surprise Alstom Hydro goodwill writeoff – am I correct? Was that thrown in this quarter to vault over the 11 cents per share expectation, resulting in the share price pop?
I wish I was smarter, and had learned something in college, so that I could answer this myself.
Anything short of an admission of bankruptcy is low quality.
If GE is as bad off as we say it is then there's no way this report was done in a high quality way.
quality all the way. and lead by lean accounting
Nuclear is barely making any money nor has a future. Better not to state the facts on the earning report. Smart move by Culp.
It means operationally we hit 15 cents EPS without one time charges. So somewhere between 0.08 -0.18 EPS could be guidance going forward. We actually registered a 1.08 loss EPS per share over this q. With all the divestments i no longer can figure out true GE outstanding shares with respect to cash flow.
Well, those two items cost a little under $2 billion totaled together, and yielded about a $10 billion increase in GE's market cap on the day of release of the 3Q results. I dunno if it is is legal or ethical, but that math might be compelling to some.
This https://www.cnbc.com/2019/10/30/general-electric-earnings-q3-2019.html says "GE reported a consolidated net loss of $9.5 billion for the third quarter", so I guess that was the $1.08 loss per share number on slide 4 of https://www.ge.com/investor-relations/sites/default/files/ge_webcast_presentation_10302019.pdf.
And if it wasn't for these two weirdos being added back in to0 the EPS calculation, GE would have badly missed the positive 11 cents per share EPS estimates from Wall Street:
Less: Goodwill impairment (0.08)
Less: Insurance premium deficiency test (0.09)
The Goodwill impairment is the unexpected total write off of Alstom Hydro's goodwill, and the "insurance premium deficiency test" 9 cents item looks like one part (will GE return to this well in future quarters to drive that non-GAAP EPS number up?) of the Harry Markopolos warning about LTC loss exposures.
Not a word about GE Nuclear in the third quarter earning report. Surprising.
IMHO...GE has been hedge betting their good fortune for quite awhile.
So give this awesome news some time to settle out and see where the chips fall.
Also don't forget that They are being investigated by the SEC & FBI for past alleged indiscretions...so who really knows what's next ?!?
The denial phase of the grieving process.
Don't worry my friend. I'm sure GE will go out of business some day. Then you can be at peace.
You just can’t ignore general accounting principles and do what you like. African engineering doesn’t work anymore except in the back of beyond.
I'll ask my ex-Enron employee buddy. He should be able to answer the question.
Ever heard of financial engineering? that is what it is. Welch started it.