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The Zacks Consensus Estimate for the company’s third-quarter earnings has increased by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one, the average beat being 35.4%.
Let’s see how things are shaping up for General Electric this earnings season.
Factors to Note
General Electric’s third-quarter results are expected to reflect the benefits of robust commercial aerospace, significant growth in LEAP engine deliveries, growth in the commercial services business and the significant increase in defense engine orders within the Aerospace segment. For the third quarter, the Zacks Consensus Estimate for the segment’s revenues indicates a 17.5% increase from the year-ago reported figure.
Strength in GE Gas Power’s heavy-duty gas turbine transactional services and GE gas turbine business are likely to drive the performance of the company’s Power segment. The acquisition of Nexus Controls (April 2023), which allows the creation of a single, full-service controls business line for further development of GE’s proprietary Mark Vle controls systems platform, is anticipated to aid the segment’s performance in the to-be-reported quarter.
The acquisition of Greenbird Integration Technology AS, which facilitates GE’s GridOS by the addition of new capabilities for connecting systems and integrating data across the grid smoothly, is expected to support the company’s performance in the third quarter. For the quarter, the Zacks Consensus Estimate for adjusted earnings indicates a 60% jump from the year-ago reported number.
However, raw material cost inflation is likely to dent GE’s bottom line in the to-be-reported quarter. Forex woes are expected to hurt the company’s top line in the third quarter. The Zacks Consensus Estimate for GE’s third-quarter 2023 revenues suggests an 18.7% decline from the year-ago reported number.
Our proven model suggests an earnings beat for GE 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, which is the case here, as elaborated below.
Earnings ESP: GE has an Earnings ESP of +2.47% as the Most Accurate Estimate is pegged at 57 cents, which is higher than the Zacks Consensus Estimate of 56 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: GE carries a Zacks Rank of 2.
Highlights of Q2 Earnings
General Electric reported second-quarter 2023 adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of adjusted earnings of 46 cents per share. The bottom line decreased 12.8% year over year. Total revenues of $15,861 million beat the consensus estimate of $15,085 million. The top line increased 14.9% year over year.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The company is scheduled to release fourth-quarter fiscal 2023 (ended Sep 30, 2023) results on Oct 30. Emerson’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 7.4%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank of 3. The company is slated to release third-quarter 2023 results on Nov 1.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 14.9%.
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Can General Electric (GE) Q3 Earnings Beat on Aerospace Boost?
General Electric Company (GE - Free Report) is scheduled to report third-quarter 2023 results on Oct 24, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has increased by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one, the average beat being 35.4%.
Let’s see how things are shaping up for General Electric this earnings season.
Factors to Note
General Electric’s third-quarter results are expected to reflect the benefits of robust commercial aerospace, significant growth in LEAP engine deliveries, growth in the commercial services business and the significant increase in defense engine orders within the Aerospace segment. For the third quarter, the Zacks Consensus Estimate for the segment’s revenues indicates a 17.5% increase from the year-ago reported figure.
Strength in GE Gas Power’s heavy-duty gas turbine transactional services and GE gas turbine business are likely to drive the performance of the company’s Power segment. The acquisition of Nexus Controls (April 2023), which allows the creation of a single, full-service controls business line for further development of GE’s proprietary Mark Vle controls systems platform, is anticipated to aid the segment’s performance in the to-be-reported quarter.
The acquisition of Greenbird Integration Technology AS, which facilitates GE’s GridOS by the addition of new capabilities for connecting systems and integrating data across the grid smoothly, is expected to support the company’s performance in the third quarter. For the quarter, the Zacks Consensus Estimate for adjusted earnings indicates a 60% jump from the year-ago reported number.
However, raw material cost inflation is likely to dent GE’s bottom line in the to-be-reported quarter. Forex woes are expected to hurt the company’s top line in the third quarter. The Zacks Consensus Estimate for GE’s third-quarter 2023 revenues suggests an 18.7% decline from the year-ago reported number.
General Electric Company Price and EPS Surprise
General Electric Company price-eps-surprise | General Electric Company Quote
Earnings Whispers
Our proven model suggests an earnings beat for GE 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, which is the case here, as elaborated below.
Earnings ESP: GE has an Earnings ESP of +2.47% as the Most Accurate Estimate is pegged at 57 cents, which is higher than the Zacks Consensus Estimate of 56 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: GE carries a Zacks Rank of 2.
Highlights of Q2 Earnings
General Electric reported second-quarter 2023 adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of adjusted earnings of 46 cents per share. The bottom line decreased 12.8% year over year. Total revenues of $15,861 million beat the consensus estimate of $15,085 million. The top line increased 14.9% year over year.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter fiscal 2023 (ended Sep 30, 2023) results on Oct 30. Emerson’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 7.4%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank of 3. The company is slated to release third-quarter 2023 results on Nov 1.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 14.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.