General Electric (GE) earnings preview: slow path to recovery?

11:27 am ET, 17 Jul 2018

General Electric Company (GE) is expected to report earnings on July 20 before market open.  The report will be for the fiscal quarter ending June 2018.  Shares are trading at 13.81, down -0.58%.

What are GE earnings expectations?  What news will the market be watching out for?  

General Electric’s recent problems can be traced to one thing: culture. Under the former CEO Jack Welch, the company employed financial engineering that ultimately detracted from shareholder value. When Jeff Immelt took the reins, he worked too slowly to address many of GE’s problems. In his 16 years at the helm, Immelt exacerbated these issues with a poor record of capital allocation.

Today, Immelt’s successor John Flannery has embarked on a turnaround of GE, wisely choosing to restore accountability and focus on three core businesses: aviation, power, and renewable energy.  The three key issues the company faces today are 1) secular threats facing GE Power, 2) a lack of liquidity, and 3) lingering liabilities at GE Capital.

Power is under threat from renewable energy. Renewables like wind power offer an attractive alternative form of energy, both from a lower cost of electricity and a diminished carbon footprint perspective. The industry also suffers from overcapacity, and under Immelt, GE ramped up production at Power and overpaid for Alstom, even as the threat of renewables loomed on the horizon.

GE Capital still has some continued exposure to legacy operations, including long-term care reinsurance and discontinued mortgage operations, but most of the bad news is behind us now.  Analysts think that GE Capital won't be destroying or creating value at least by 2020.

General Electric Co. has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 3 cents ($.28 actuals vs. $.25 forecast) in FQ2’17;
  • Missed analyst EPS estimates by 4 cents ($.45 actuals vs. $.49 forecast) in FQ3’17;
  • Missed analyst EPS estimates by 1 cent ($.27 actuals vs. $.28 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 5 cents ($.16 actuals vs. $.11 forecast) in FQ1’18.

For FQ2’18, EPS is expected to decline by 36% year-over-year to $.18, while revenue is expected to grow 1% year-over-year to $29.76 billion.  

General Electric Company (GE) average analyst price target ($16.42) is 18.9% above its current price ($13.81).

For the latest price and information on General Electric Company, please visit Finstead and search for "GE price" or "GE news".

Walgreens Boots Alliance (WBA) earnings: how much will profit grow?

5:23 pm ET, 27 Jun 2018

Walgreens Boots Alliance, Inc. (WBA)  is expected to report earnings on June 28 before market open. The report will be for the quarter ending May 2018.  The shares are trading at 66.75, up 0.35% from yesterday.

What are the WBA earnings expectations?  What news will the market be watching out for?

Top-line growth is the metric that makes Walgreens look good now. The company's revenue of $124 billion over a last 12 months is formidable, and the 12% spike in sales last quarter looks fantastic.  Analysts believe that growth will continue and the company will reach $132 billion in sales in 2018. 

The key question that investors are now asking is, how much of that revenue growth is dropping to the bottom line when it comes to growth and margin?  It's no secret that Walgreen's execution is excellent overall, despite margin pressures and a decline in retail sales. 

WBA has a history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 2 cents ($1.33 actuals vs. $1.31 forecast) in Q3’17;
  • Beat analyst EPS estimates by 9 cents ($1.31 actuals vs. $1.22 forecast) in Q4’17;
  • Beat analyst EPS estimates by 1 cents ($1.28 actuals vs. $1.27 forecast) in Q1’18;
  • Beat analyst EPS estimates by 18 cents ($1.73 actuals vs. $1.55 forecast) in Q2’18.

For Q3’18, EPS is expected to grow by 11% year-over-year to $1.48, while revenue is expected to grow 12% year-over-year to $33.64 million.  


Over the last month, Walgreens Boots Alliance, Inc. (WBA) returned +5.07%.

Walgreens Boots Alliance, Inc. (WBA) average analyst price target ($80.63) is 20.79% above its current price ($66.75).

Walgreens Boots Alliance recently made news because it joined the Dow Jones Industrial Average, replacing General Electric (NYSE: GE), an original index member that exited the top 30 elite group of US corporations.

For the latest price and information on Walgreens Boots Alliance, Inc., please visit Finstead and search for "WBA price" or "WBA news".

General Electric (NYSE:GE): What You Need To Know

1:58 pm ET, 12 Apr 2018

The General Electric (NYSE: GE) stock has been going through a rough period lately.  Year to date, this stock declined 25% (visit Finstead and type “GE YTD return” to get the latest info).  GE also underperformed the market last year. 

What do you need to know about this company now?

GE's ability to raise new capital might be negatively affected by its announcement about the restatement of 2016 and 2017 results. The borrowing cost that would be portrayed in the restatement will have a bearish impact on fundraising. 

GE declared a $6.2 Billion charge on its fourth-quarter earnings in 2018 because of GE Capital, its financial services subsidiary. This amount is currently being investigated by the US Securities and Exchange Commission (SEC).

GE intends to have its core divisions separated, i.e., healthcare, aviation, and power. It hinted at shedding more than $20 Billion non-core assets.  Consequently, GE is planning to add $15 Billion to its capital reserves in the coming 7 years.

What are the chances of the General Electric stock recovering?  Per Finstead Research, the company’s average price target is $18.  It has an upside of about 36%.

GE stock has a fairly low valuation. GE's P/E ratio is only ahead of that of Whirlpool (WHR) and Intel (INTC).

General Electric Company (GE) Stock Guide

Updated at: 10:05 pm ET, 17 Sep 2020

Before we start: if you're looking for GE stock price, you can quickly find it out by visiting Finny and typing "GE quote". If you're looking for a quick scoop on GE stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "GE". You'll get all this info in one place. Or you can just type "GE news" to get the latest stock news.

Looking to buy or sell General Electric Company (GE)? Interested in getting the full scoop on GE, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this GE stock guide, we'll address key questions about GE, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are GE earnings?
2. What is GE dividend?
3. What is GE dividend yield?
4. What is GE stock forecast (i.e., prediction)?
5. GE buy or sell? What is GE Finny Score?
6. What are the reasons to buy GE? Why should I buy GE stock?
7. What are the reasons to sell GE? Why should I sell GE stock?
8. What are GE key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are GE earnings?

GE trailing 12-month earnings per share (EPS) is -$0.58.

2. What is GE dividend?

GE forward dividend is $0.04.

3. What is GE dividend yield?

GE forward dividend yield is 0.63%.

Analyst Predictions

4. What is GE stock forecast (i.e., prediction)?

Based on GE analyst price targets, GE stock forecast is $7.75 (for a year from now). That means the average analyst price target for GE stock is $7.75. The prediction is based on 17 analyst estimates.

The low price target for GE is $4.80, while the high price target is $11.00.

GE analyst rating is Hold.

Analysis

5. GE buy or sell? What is GE Finny Score?

#{finnyScore:60}Our quantitative analysis shows 3 reasons to buy and 2 reasons to sell GE, resulting in Finny Score of 60.

6. What are the reasons to buy GE? Why should I buy GE stock?

Here are the reasons to buy GE stock:

  • General Electric is restructuring its business. In the long-term it will focus only on its core segments - Power, Aviation, and Renewable Energy. The company looks attractive based on the sum of the parts valuation.
  • The company's global presence is helping in fueling its growth. Some investors who are looking for emerging markets presence will choose to have GE in their stock portfolios.
  • GE's aviation business will be a growth engine for the company. It is generating good cash flows. LEAP engines have become one of the fast-selling units.
  • The company is led by industry veterans with a solid success record who are well positioned to restore GE's culture of accountability.
  • GE Price/Book ratio is 1.61, which is low compared to its industry peers’ P/B ratios. See GE forward Price/Book ratio chart.
  • GE Price/Sales ratio is 0.62, which is low compared to its industry peers’ P/S ratios. See GE forward Price/Sales ratio chart.
  • GE cash to debt ratio is 0.26, higher than the average industry (0.15) and sector (0.12) cash to debt ratio. See GE cash to debt chart.

7. What are the reasons to sell GE? Why should I sell GE stock?

Let's look at the reasons to sell GE stock (i.e., the bear case):

  • The restructuring hype is overblown. Weak global growth and emerging trade wars will slow the company's revenue growth.
  • GE's turnaround has a lot of unknowns, including the impact of an economic recession and trade wars.
  • GE continues to burn substantial cash, with no apparent road to recovery. An increase in operating expenses has put pressure on the company's profits.
  • GE Capital has zero equity value and continues to be a drag on the business.
  • GE quarterly revenue growth was -24.20%, lower than the industry and sector average revenue growth (1.03% and 1.01%, respectively). See GE revenue growth chart.
  • GE profitability is declining. The YoY profit margin change was -11.71 percentage points. See GE profitability chart.

Key Stats

8. What are GE key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for GE:

Metrics GE
Price $7.04
Average Price Target / Upside $7.75 / 10.09%
Average Analyst Rating Hold
Forward Dividend Yield 0.63%
Industry Diversified Industrials
Sector Industrials
Number of Employees 283,000
Market Cap $54.18B
Forward P/E Ratio 17.69
Price/Book Ratio 0.62
Revenue (TTM) $87.87B
YoY Quarterly Revenue Growth -24.20%
Profit Margin -5.10%

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