General Electric Company (GE Quick QuoteGE - Free Report) is scheduled to report fourth-quarter 2021 results on Jan25, before market open.

 

The company delivered better-than-expected earnings in three of the last four quarters and met estimates once. The average earnings surprise for the four quarters is 38.92%. In the last reported quarter, the company reported earnings of 57 cents per share, surpassing the Zacks Consensus Estimate of 41 cents by 39.02%.

 

In the past three months, shares of the company have lost 5.6% compared with the industry’s decline of 4.7%.

 

 

Let us delve deeper.

General Electric’s performance in the fourth quarter is expected to have benefited from healthy digital businesses, product offerings, technological advancements and commercial wins. Its healthy liquidity position, synergistic gains from buyouts, and focus on lowering debts are expected to have been other tailwinds in the quarter.

 

On the flip side, woes related to supply-chain restrictions are expected to have hurt the quarterly performance. Also, headwinds associated with international operations are anticipated to have influenced the performance.

 

The Zack Consensus Estimate for General Electric’s earnings for the fourth quarter is pegged at 83 cents, suggesting growth of 29.7% from the year-ago reported figure and a sequential increase of 45.6%. The consensus estimate for revenues of $21,216 million suggests a 3.2% decrease from the year-ago quarter’s reported figure and 15.1% growth sequentially.

 

A brief discussion on General Electric’s segments is provided below:

 

For the Healthcare segment, synergies arising from acquired assets are likely to have aided the performance. Notably, BK Medical was acquired and added to the segment in December. Supply-chain issues are anticipated to have continued to be spoilsports. The Zacks Consensus Estimate for Healthcare revenues stands at $4,723 million, implying a 2.1% decrease from the prior-year reported figure and 8.8% growth sequentially.

 

For the Power segment, stable demand for gas is expected to have supported the performance in the fourth quarter. Notably, the segment suffered from lower gas power sales in the third quarter of 2021. The Zacks Consensus Estimate for the segment’s revenues is pegged at $4,759 million, suggesting a decline of 11.6% from the year-ago reported figure and an 18.2% increase sequentially.

 

For the Aviation segment, woes related to material fulfillment are likely to have impacted the commercial engine business. Also, weakness in the military business is expected to have ailed. However, improvement in the commercial services business is likely to have supported the performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $6,756 million, indicating a 15.5% increase from the year-ago reported figure and 25.2% growth sequentially.

 

For the Renewable Energy segment, technological advancements, as well as strong footholds in energy transition, are likely tailwinds. However, inflation and weak onshore wind markets in the United States are likely to have impacted the performance. The consensus estimate for the segment’s revenues is pegged at $4,424 million for the fourth quarter, suggesting a 0.4% decline from the year-ago quarter’s reported number and a 5.1% increase from the previous quarter’s figure.

 

The Zacks Consensus Estimate for the Industrial segment’s (comprising Power, Aviation, Renewable Energy and Healthcare) revenues for the to-be-reported quarter is pegged at $20,662 million, suggesting a 5.8% decrease from the year-ago quarter’s reported number and 12.1% growth from the third-quarter figure. Profit for the Industrial segment is likely to be $2,107 million for the fourth quarter of 2021, suggesting growth of 33.32% from the year-ago quarter’s reported figure and a 57.6% increase from the previous quarter’s number.

Our proven model does not conclusively predict an earnings beat for General Electric this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with General Electric as you will see below.

 

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

Earnings ESP: General Electric has an Earnings ESP of -3.28%, as the Most Accurate Estimate of 80 cents is below the Zacks Consensus Estimate of 83 cents.

 

Zacks Rank: General Electric currently carries a Zacks Rank #4 (Sell).

Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings this season:

 

UFP Technologies, Inc. (UFPT Quick QuoteUFPT - Free Report) currently has an Earnings ESP of +8.77% and is a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

The Zacks Consensus Estimate for UFP Technologies’ earnings is pegged at 57 cents per share for the fourth quarter of 2021. The company delivered better-than-expected results in three of the last four quarters, while lagging estimates once. The average earnings surprise for UFPT is 22.90%.

 

AGCO Corporation (AGCO Quick QuoteAGCO - Free Report) presently has an Earnings ESP of +25.00% and a Zacks Rank of 2.

 

For the fourth quarter of 2021, the Zacks Consensus Estimate for AGCO’s earnings is pegged at $1.72 per share. The company delivered better-than-expected results for the fourth quarter of 2021, with an average earnings surprise of 47.53%.

 

3M Company (MMM Quick QuoteMMM - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank #3.

 

The Zacks Consensus Estimate for 3M’s earnings is pegged at $2.03 per share for the fourth quarter of 2021. In the last four quarters, the company’s results were better than expected, with an average earnings surprise of 14.82%.

 

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