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The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised downward by 1.8% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one.
Let’s see how things are shaping up for General Electric this earnings season.
General Electric’s fourth-quarter performance is likely to have benefited from strong performance of the Aerospace segment owing to continued recovery in the commercial market. The Zacks Consensus Estimate for Aerospace segment revenues in the fourth quarter indicates a 25.9% jump from the year-ago reported number.
However, lower US onshore wind volumes and continued pressure from onshore North America market dynamics is likely to have weighed on the Renewable Energy segment’s performance. The Zacks Consensus Estimate for Renewable Energy segment revenues hints at an approximate 1% dip from the year-ago reported figure.
Supply-chain disruptions, including labor and material shortages and high logistics costs, are expected to have dented GE’s bottom-line performance. Given the substantial international presence, adverse foreign currency movements might have impacted sales in the to-be-reported quarter.
What Does the Zacks Model Say?
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 chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: General Electric has an Earnings ESP of -5.82% as the Most Accurate Estimate is pegged at $1.04, lower than the Zacks Consensus Estimate of $1.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: General Electric currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q3 Earnings
In third-quarter 2022, General Electric reported adjusted earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 47 cents. The bottom line declined significantly year over year. Total revenues of $19,084 million surpassed the Zacks Consensus Estimate of $19,035 million. The top line increased in low-single digits year over year, thanks to higher Aerospace revenues, driven by growth in commercial services due to a significant increase in shop visits, strong spare part sales and favorable prices.
Stocks to Consider
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 reporting cycle.
Caterpillar (CAT - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is scheduled to release fourth-quarter earnings numbers on Jan 31.
The Zacks Consensus Estimate for Caterpillar’s fourth-quarter earnings has been revised upward by more than 100% in the past 90 days. CAT pulled off a trailing four-quarter earnings surprise of 14.7%, on average.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #2. The company is slated to release fourth-quarter financial numbers on Jan 31.
The Zacks Consensus Estimate for IDEX’s fourth-quarter earnings has been revised upward by 1.5% in the past 90 days. IEX delivered a trailing four-quarter earnings surprise of 5.7%, on average.
Xylem (XYL - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. The company is set to release fourth-quarter results on Feb 7.
The Zacks Consensus Estimate for Xylem’s fourth-quarter earnings has been revised upward by a penny in the past 90 days. XYL pulled off a trailing four-quarter earnings surprise of 13.3%, on average.
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What's in Store for General Electric (GE) in Q4 Earnings?
General Electric Company (GE - Free Report) is scheduled to report fourth-quarter 2022 results on Jan 24, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised downward by 1.8% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one.
Let’s see how things are shaping up for General Electric this earnings season.
General Electric Company Price and EPS Surprise
General Electric Company price-eps-surprise | General Electric Company Quote
Factors to Note
General Electric’s fourth-quarter performance is likely to have benefited from strong performance of the Aerospace segment owing to continued recovery in the commercial market. The Zacks Consensus Estimate for Aerospace segment revenues in the fourth quarter indicates a 25.9% jump from the year-ago reported number.
However, lower US onshore wind volumes and continued pressure from onshore North America market dynamics is likely to have weighed on the Renewable Energy segment’s performance. The Zacks Consensus Estimate for Renewable Energy segment revenues hints at an approximate 1% dip from the year-ago reported figure.
Supply-chain disruptions, including labor and material shortages and high logistics costs, are expected to have dented GE’s bottom-line performance. Given the substantial international presence, adverse foreign currency movements might have impacted sales in the to-be-reported quarter.
What Does the Zacks Model Say?
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 chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: General Electric has an Earnings ESP of -5.82% as the Most Accurate Estimate is pegged at $1.04, lower than the Zacks Consensus Estimate of $1.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: General Electric currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q3 Earnings
In third-quarter 2022, General Electric reported adjusted earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 47 cents. The bottom line declined significantly year over year. Total revenues of $19,084 million surpassed the Zacks Consensus Estimate of $19,035 million. The top line increased in low-single digits year over year, thanks to higher Aerospace revenues, driven by growth in commercial services due to a significant increase in shop visits, strong spare part sales and favorable prices.
Stocks to Consider
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 reporting cycle.
Caterpillar (CAT - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is scheduled to release fourth-quarter earnings numbers on Jan 31.
The Zacks Consensus Estimate for Caterpillar’s fourth-quarter earnings has been revised upward by more than 100% in the past 90 days. CAT pulled off a trailing four-quarter earnings surprise of 14.7%, on average.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #2. The company is slated to release fourth-quarter financial numbers on Jan 31.
The Zacks Consensus Estimate for IDEX’s fourth-quarter earnings has been revised upward by 1.5% in the past 90 days. IEX delivered a trailing four-quarter earnings surprise of 5.7%, on average.
Xylem (XYL - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. The company is set to release fourth-quarter results on Feb 7.
The Zacks Consensus Estimate for Xylem’s fourth-quarter earnings has been revised upward by a penny in the past 90 days. XYL pulled off a trailing four-quarter earnings surprise of 13.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.