The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A General Electric Company (GE) logo is seen on a toggle switch package in New York in this January 18, 2012 file photo. General Electric Co posted a record backlog of orders that the company said positioned it well for 2014, lifting shares and overshadowing a decline in quarterly profit and revenue.
A General Electric Company (GE) logo is seen on a toggle switch package in New York in this January 18, 2012 file photo. General Electric Co posted a record backlog of orders that the company said positioned it well for 2014, lifting shares and overshadowing a decline in quarterly profit and revenue.
(Shannon Stapleton/Reuters)

GE missed on revenue. You should buy it anyway

General Electric Co. has an order backlog of almost $230-billion (U.S.) and dominant business franchises in most of the countries boasting the world’s biggest secular growth stories. So, should investors ignore GE’s revenue shortfall announced Friday? Yeah, you really should.

General Electric stock climbed more than 4 per cent Friday after reporting adjusted earnings a penny above expectations at 36 cents. More than earnings, the market was responding to improving profit margins and a $6-billion quarter-over-quarter increase in the company’s backlog of orders. Across all divisions, the company’s backlog now stands at a record $229-billion.