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.