General Electric.Numbers for the fourth quarter and full year on Friday

General Electric. Numbers for the fourth quarter and full year on Friday, I commented to my colleagues that it was nothing short of amazing that by the third week after your full year, you were able to release those numbers. The market participants clearly liked what they saw, sending the stock to levels last seen in October 2008. When days were dark, friends were non-existent and the Mayans had meant to say 2008, and not 2012. On the session the stock was up 7.11 percent to 19.74. Oh, and just for the record while we are talking about price, you can get the premier industrial conglomerate for 27 percent less than a DECADE AGO.




Into the numbers, the actual Q4 EPS of 36 US cents was a four cent beat, and a top line beat too. And the health of the company seems great too, the absolute best new orders growth since 2007. Remember, when we won the RWC? Way back then.



From the company release ---> GE Reports 4Q '10 the company makes some encouraging noises about the global economy: "Stronger top-line performance; environment continues to improve". And that "Infrastructure orders of $24.8 billion (are) up 12% from year ago; equipment up 20%; services up 5%". But perhaps most encouraging is that GE Capital is recovering and on track to start paying a dividend to the group company (an analyst on the box predicted) next year.



The first paragraph of the conference call again underscores what the official release is trying to do, make you feel that they (GE) can see the environment improving, and as a barometer for the broader American (and global economy) should be taken seriously.




Jeff Immelt: "The environment continues to improve, really, it's broader and deeper as we look across the portfolio. A good strength in orders. Losses are down. Credit demand is up. Across the rail and aircraft market very strong. As I've said in the past, we just think the economy can get a little bit stronger everyday. We had good top line performance, the best in a while, 6% industrial organic growth. And then, infrastructure orders 12%, equipment up 20%, services up 5%. We end the year with a very strong backlog."



Plus shareholders were rewarded with a 40 percent increase in the quarterly dividend to 14 cents from 10. At the end of 2007, that strong year, the quarterly dividend was 31 cents a share. Unbelievably more than FY earnings are now. No wonder the stock went from above 40 mid 2007 to nearly 7 in March 2009.



About those new orders: "We end 2010 with a record backlog and it's very broad based. I think if you look across the Energy segment, Oil & Gas is very strong. Service is growing. We still expect energy equipment to turn positive in 2011 but a lot of good signs. Aviation, again, very strong. Healthcare growth continues. And transportation recovery, there's fewer locomotives part. We had 240 North American locos. So again we feel very good about the backlog and how we're positioned going forward just given the overall strength of our order base."



So where to from here? Well, consensus is that this is a high quality beat, even though the NBC sale included a tax credit, and of course will stop contributing from about now. We are still buyers of the stock and positive on their future prospects.