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Another Strong Performance for GE

This quarter's strong performance punctuates our long-term thesis for GE


 General Electric (GE) delivered another strong performance in its first quarter with earnings of $0.33 per share, ahead of our expectations. Management increased the dividend for the third time in nine months, taking the annualized dividend payout to $0.60 per share. As we have expected for several years, we think this quarter's performance underscores the company's strategy to return to the core infrastructure businesses.

Industrial revenue increased 8% from the same quarter last year, as internal revenue increased 5%. All reporting segments delivered growth in the quarter, a sign that GE's portfolio has finally lapped the recovery. We are particularly impressed by the firm's strong order growth of 11%, which we think bodes well for future top-line growth. While the energy business has cooled off from prerecession levels, we are encouraged by the 18% growth in transportation and 9.5% growth in health care.

Daniel Holland does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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