General Electric Company (GE - Free Report) is scheduled to report second-quarter 2018 results on Jul 20, before the market opens.
This industrial conglomerate’s financial performance in the last four quarters was mixed, having recorded better-than-expected results in two and lagging estimates in the other two. The company’s average earnings surprise was a positive 3.27%. In the last reported quarter, the company’s earnings of 16 cents per share surpassed the Zacks Consensus Estimate of 11 cents by 45.45%.
The company’s share price movements have not been impressive. In the past six months, the stock price decreased 15.8%, underperforming 10% decline recorded by the industry it belongs to. It is worth noting here that the stock has gained 5.7% in the past month.
Let us see how things are shaping up for General Electric this quarter.
Factors Influencing GE’s Performance
In second-quarter 2018, General Electric communicated plans to restructure its business portfolio. It will separate GE Healthcare and turn it into a stand-alone company while will exit oil and gas businesses by disposing of its 62.5% interest stake in Baker Hughes, a GE company . Beside these, GE Transportation will be sold to Wabtec Corporation and efforts are on track to shrink exposure in GE Capital business. The restructuring actions will evolve General Electric into a high-tech industrial company — focused on Aviation, Power and Renewable Energy.
Rising passenger air travel (global) and growth in unit order will likely boost Aviation as well as Renewable Energy results and in turn, benefit GE’s quarterly results. Healthcare will gain from strengthening footholds in emerging markets and growth in bioprocess businesses as well as development in advanced markets. Also, the company’s initiatives to reduce its structural costs by more than $2 billion in 2018 will be advantageous.
However, the company believes that pricing issues in Renewable Energy, as well as weakness in Power due to tough operating conditions, might be concerning. The stock currently carries a Zacks Rank #4 (Sell).
Amid this backdrop, the Zacks Consensus Estimate for the Industrial segment revenues in the to-be-reported quarter is currently pegged at $28,009 million, reflecting growth of 2.2% from the previous quarter’s figure of $27,395 million. Profit for the industrial segment is likely to increase 21.9%, sequentially, to $3,262 million.
General Electric Company Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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General Electric Company (GE - Free Report) is scheduled to report second-quarter 2018 results on Jul 20, before the market opens.
This industrial conglomerate’s financial performance in the last four quarters was mixed, having recorded better-than-expected results in two and lagging estimates in the other two. The company’s average earnings surprise was a positive 3.27%. In the last reported quarter, the company’s earnings of 16 cents per share surpassed the Zacks Consensus Estimate of 11 cents by 45.45%.
The company’s share price movements have not been impressive. In the past six months, the stock price decreased 15.8%, underperforming 10% decline recorded by the industry it belongs to. It is worth noting here that the stock has gained 5.7% in the past month.
Let us see how things are shaping up for General Electric this quarter.
Factors Influencing GE’s Performance
In second-quarter 2018, General Electric communicated plans to restructure its business portfolio. It will separate GE Healthcare and turn it into a stand-alone company while will exit oil and gas businesses by disposing of its 62.5% interest stake in Baker Hughes, a GE company . Beside these, GE Transportation will be sold to Wabtec Corporation and efforts are on track to shrink exposure in GE Capital business. The restructuring actions will evolve General Electric into a high-tech industrial company — focused on Aviation, Power and Renewable Energy.
Rising passenger air travel (global) and growth in unit order will likely boost Aviation as well as Renewable Energy results and in turn, benefit GE’s quarterly results. Healthcare will gain from strengthening footholds in emerging markets and growth in bioprocess businesses as well as development in advanced markets. Also, the company’s initiatives to reduce its structural costs by more than $2 billion in 2018 will be advantageous.
However, the company believes that pricing issues in Renewable Energy, as well as weakness in Power due to tough operating conditions, might be concerning. The stock currently carries a Zacks Rank #4 (Sell).
Amid this backdrop, the Zacks Consensus Estimate for the Industrial segment revenues in the to-be-reported quarter is currently pegged at $28,009 million, reflecting growth of 2.2% from the previous quarter’s figure of $27,395 million. Profit for the industrial segment is likely to increase 21.9%, sequentially, to $3,262 million.
General Electric Company Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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