General Electric Financial Arm's Tax Rate Drove Earnings Beat:
NEW YORK (TheStreet) -- General Electric's financial unit paid just a 9.4% tax rate in the first quarter, making a key contribution to the conglomerate's positive first quarter earnings surprise
on Friday.
General Electric management "set expectations for a 15% tax rate and it came in at 9.4% for the quarter," wrote Citigroup analyst Deane Dray in a report published Sunday, noting that the difference added a penny per share to earnings. General Electric earned 34 cents per share in the first quarter, beating consensus analyst expectations by a penny.
General Electric's financial unit earned $1.99 billion from continuing operations in the first quarter, while paying $187 million in taxes.
"Taking a strict view even on just the tax rate, we could easily interpret the 'clean number' as more of a miss relative to our expectations," wrote Bernstein Research analyst Steven Winoker in as research note on Friday.
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NEW YORK (TheStreet) -- General Electric's financial unit paid just a 9.4% tax rate in the first quarter, making a key contribution to the conglomerate's positive first quarter earnings surprise
on Friday.
General Electric management "set expectations for a 15% tax rate and it came in at 9.4% for the quarter," wrote Citigroup analyst Deane Dray in a report published Sunday, noting that the difference added a penny per share to earnings. General Electric earned 34 cents per share in the first quarter, beating consensus analyst expectations by a penny.
General Electric's financial unit earned $1.99 billion from continuing operations in the first quarter, while paying $187 million in taxes.
"Taking a strict view even on just the tax rate, we could easily interpret the 'clean number' as more of a miss relative to our expectations," wrote Bernstein Research analyst Steven Winoker in as research note on Friday.
...
Click to view a price quote on GE.
Click to research the Industrial industry.
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