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General Electric to Upgrade Edison's Power Plant in Italy
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General Electric Company’s (GE - Free Report) Power segment recently entered into an agreement with Edison — the second largest integrated energy company in Italy — to improve performance at the latter’s Candela combined-cycle power station based in Puglia. Per the deal, General Electric will be assigned the task of installing its industry-leading Advanced Gas Path ("AGP") technology at the plant. This, in turn, might improve the company’s operational performance as well as flexibility with more output, efficiency and availability. Notably, this AGP installation marks the first of this type of implementation in south Europe.
As part of the contract, General Electric should be responsible for the upgradation of hardware to the current gas turbine that would increase the plant’s efficiency and output to 400 megawatts (MW). Apart from the AGP solution, the company’s predictive maintenance software and cybersecurity solution will allow Edison to improve asset visibility, reliability and security. The solution is likely to reduce the plant’s operating and maintenance costs as well. Particularly, the deployment of Predix-based Asset Performance Management (APM) digital solution will offer important insights into operational risks along with improving inspection intervals.
GE Power was also selected to lead Engineering Procurement and Commissioning (EPC) project together with Alstom Power Systems to build the ultra-supercritical (USC) coal power plant Ostroleka C in Poland. Apart from co-leading the consortium, the company’s work will encompass of designing, manufacturing and delivering its ultra-supercritical technology components for this power plant.
Notably, GE Power is the largest business segment of the company in terms of corporate revenues. However, the business has been a drag on earnings over the last few quarters. This is because global demand started to decline with increasing popularity of renewable energy sources, overcapacity, lower utilization and fewer outages. Moreover, in a bid to focus more on its core business activities, the company has exited from the financial business and has increased its investments in key industrial businesses through restructuring, state-of-the-art technology and research & development initiatives.
Earlier this week, the company inked an agreement to sell a trio of its health-care information technology businesses to a private equity firm, Veritas Capital. This divestment is a step toward General Electric’s initiatives to streamline its operations and sharpen its focus on smart diagnostics and connected devices.
In the last three months, the Zacks Rank #4 (Sell) company has underperformed the industry. While the stock has lost 11.9%, the industry declined 27.4%.
Going ahead, General Electric plans to focus on three core segments — power, aviation and healthcare equipment — which require advanced hi-tech products with a high degree of reliability. These products might generate higher margins and are likely to contribute to long-term growth.
Stocks to Consider
Some better-ranked stocks from the same space are Leucadia National Corporation , Raven Industries, Inc. and Federal Signal Corporation (FSS - Free Report) . While Leucadia National sports a Zacks Rank #1 (Strong Buy), Raven Industries and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Leucadia National surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 6.6%.
Raven Industries outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 20.2%.
Federal Signal surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 16.5%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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General Electric to Upgrade Edison's Power Plant in Italy
General Electric Company’s (GE - Free Report) Power segment recently entered into an agreement with Edison — the second largest integrated energy company in Italy — to improve performance at the latter’s Candela combined-cycle power station based in Puglia. Per the deal, General Electric will be assigned the task of installing its industry-leading Advanced Gas Path ("AGP") technology at the plant. This, in turn, might improve the company’s operational performance as well as flexibility with more output, efficiency and availability. Notably, this AGP installation marks the first of this type of implementation in south Europe.
As part of the contract, General Electric should be responsible for the upgradation of hardware to the current gas turbine that would increase the plant’s efficiency and output to 400 megawatts (MW). Apart from the AGP solution, the company’s predictive maintenance software and cybersecurity solution will allow Edison to improve asset visibility, reliability and security. The solution is likely to reduce the plant’s operating and maintenance costs as well. Particularly, the deployment of Predix-based Asset Performance Management (APM) digital solution will offer important insights into operational risks along with improving inspection intervals.
GE Power was also selected to lead Engineering Procurement and Commissioning (EPC) project together with Alstom Power Systems to build the ultra-supercritical (USC) coal power plant Ostroleka C in Poland. Apart from co-leading the consortium, the company’s work will encompass of designing, manufacturing and delivering its ultra-supercritical technology components for this power plant.
Notably, GE Power is the largest business segment of the company in terms of corporate revenues. However, the business has been a drag on earnings over the last few quarters. This is because global demand started to decline with increasing popularity of renewable energy sources, overcapacity, lower utilization and fewer outages. Moreover, in a bid to focus more on its core business activities, the company has exited from the financial business and has increased its investments in key industrial businesses through restructuring, state-of-the-art technology and research & development initiatives.
Earlier this week, the company inked an agreement to sell a trio of its health-care information technology businesses to a private equity firm, Veritas Capital. This divestment is a step toward General Electric’s initiatives to streamline its operations and sharpen its focus on smart diagnostics and connected devices.
In the last three months, the Zacks Rank #4 (Sell) company has underperformed the industry. While the stock has lost 11.9%, the industry declined 27.4%.
Going ahead, General Electric plans to focus on three core segments — power, aviation and healthcare equipment — which require advanced hi-tech products with a high degree of reliability. These products might generate higher margins and are likely to contribute to long-term growth.
Stocks to Consider
Some better-ranked stocks from the same space are Leucadia National Corporation , Raven Industries, Inc. and Federal Signal Corporation (FSS - Free Report) . While Leucadia National sports a Zacks Rank #1 (Strong Buy), Raven Industries and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Leucadia National surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 6.6%.
Raven Industries outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 20.2%.
Federal Signal surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 16.5%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>