We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Electric (GE) Takes Financial Actions, Wins Contracts
Read MoreHide Full Article
General Electric Company (GE - Free Report) yesterday communicated about multiple actions worth $4 billion to strengthen its financial position. These moves were taken by the conglomerate on Dec 7.
Also, the company discussed separately about businesses that it won through the Power, Renewable Energy and Healthcare units.
Notably, General Electric’s shares have gained 0.9% yesterday, ending the trading session at $10.96.
Inside the Headlines
As noted, the financial actions directed to lower debts and solidify the balance sheet included satisfying the funding requirements of $2.5 billion of ERISA GE Pension Plan. This voluntary funding by the company pertains to 2021, 2022 and 2023.
In addition, the company noted that it repaid to GE Capital intercompany loan worth $1.5 billion.
The above-mentioned actions along with those taken so far and those yet to be accomplished in the fourth quarter will likely help General Electric to lower its debts by $14.5 billion in 2020. This amount includes $4.9 billion related to GE Capital and $9.6 billion of GE Industrial debts.
Related to the contracts, GE Power secured a contract to supply 60 Hertz gas turbine —7HA.03 — for Shinsejong Combined Cycle Power Plant. This plant is owned by Korea Electric Power Corporation’s subsidiary Korea Southern Power Co, Ltd. It is located in Sejong Multifunctional Administrative City in South Korea. Financial terms of the contract were not disclosed.
Also, GE Renewable Energy was rewarded a blade recycling contract from Veolia North America. Per this contract, blades removed from Veolia’s onshore turbines in the U.S. during repower and upgrade actions will be recycled.
Further, GE Healthcare’s SIGNA Architect 3T MRI scanner will be used by SimonMed Imaging — provider of outpatient imaging services in the U.S. Notably, SIGNA Architect 3T MRI scanners are equipped with AIR Recon DL technology.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $95.1 billion, General Electric currently carries a Zacks Rank #3 (Hold). Actions to deleverage balance sheet, solid liquidity position and portfolio-restructuring initiatives are expected to be beneficial for the company in the quarters ahead. However, the pandemic-related woes are impacting businesses, which are concerning.
In the past 60 days, the company’s earnings estimates have been unchanged at 8 cents for the fourth quarter of 2020, while the same has decreased from 6 cents to 5 cents for the first quarter of 2021.
In the past 60 days, earnings estimates for these companies have improved for the current year. Also, earnings surprise for the last four reported quarters, on average, was 1.85% for 3M, 14.59% for Crane and 17.00% for Danaher.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
General Electric (GE) Takes Financial Actions, Wins Contracts
General Electric Company (GE - Free Report) yesterday communicated about multiple actions worth $4 billion to strengthen its financial position. These moves were taken by the conglomerate on Dec 7.
Also, the company discussed separately about businesses that it won through the Power, Renewable Energy and Healthcare units.
Notably, General Electric’s shares have gained 0.9% yesterday, ending the trading session at $10.96.
Inside the Headlines
As noted, the financial actions directed to lower debts and solidify the balance sheet included satisfying the funding requirements of $2.5 billion of ERISA GE Pension Plan. This voluntary funding by the company pertains to 2021, 2022 and 2023.
In addition, the company noted that it repaid to GE Capital intercompany loan worth $1.5 billion.
The above-mentioned actions along with those taken so far and those yet to be accomplished in the fourth quarter will likely help General Electric to lower its debts by $14.5 billion in 2020. This amount includes $4.9 billion related to GE Capital and $9.6 billion of GE Industrial debts.
Related to the contracts, GE Power secured a contract to supply 60 Hertz gas turbine —7HA.03 — for Shinsejong Combined Cycle Power Plant. This plant is owned by Korea Electric Power Corporation’s subsidiary Korea Southern Power Co, Ltd. It is located in Sejong Multifunctional Administrative City in South Korea. Financial terms of the contract were not disclosed.
Also, GE Renewable Energy was rewarded a blade recycling contract from Veolia North America. Per this contract, blades removed from Veolia’s onshore turbines in the U.S. during repower and upgrade actions will be recycled.
Further, GE Healthcare’s SIGNA Architect 3T MRI scanner will be used by SimonMed Imaging — provider of outpatient imaging services in the U.S. Notably, SIGNA Architect 3T MRI scanners are equipped with AIR Recon DL technology.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $95.1 billion, General Electric currently carries a Zacks Rank #3 (Hold). Actions to deleverage balance sheet, solid liquidity position and portfolio-restructuring initiatives are expected to be beneficial for the company in the quarters ahead. However, the pandemic-related woes are impacting businesses, which are concerning.
In the past 60 days, the company’s earnings estimates have been unchanged at 8 cents for the fourth quarter of 2020, while the same has decreased from 6 cents to 5 cents for the first quarter of 2021.
General Electric Company Price and Consensus
General Electric Company price-consensus-chart | General Electric Company Quote
In the past three months, General Electric's shares have gained 82.7% compared with the industry’s growth of 23.3%.
Stocks to Consider
Three better-ranked stocks in the industry are 3M Company (MMM - Free Report) , Crane Co. (CR - Free Report) and Danaher Corporation (DHR - Free Report) . These companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, earnings estimates for these companies have improved for the current year. Also, earnings surprise for the last four reported quarters, on average, was 1.85% for 3M, 14.59% for Crane and 17.00% for Danaher.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>