GE Aerospace (GE)

[DiscoverGold]

Earnings Previews: General Electric Co. (NYSE: GE)
By: 24/7 Wall St. | April 22, 2022

• Here is a look at what to expect from four more companies also reporting results Tuesday morning.

General Electric

Over the past 12 months, shares of General Electric Co. (NYSE: GE) have slipped by nearly 12%. They dipped to their 52-week low in early March. Last November, the company said it would spin off its health care and energy businesses into separate companies and become primarily an aviation company.

The health care spinoff is expected early next year and the energy spinoff a year later. That means that by mid-2024, what remains of GE will be worth less, probably a lot less. The payoff for investors in shares of the new companies will help salve the wounds, but there is no compelling reason to hold on to the stock in the meantime.

Analysts remain bullish on GE stock. There are 15 Buy or Strong Buy ratings on the stock, along with six Hold ratings, among the 21 brokerages covering the stock. At a recent share price of around $90.60, the potential upside to a median price target of $117.00 is about 29%. At the high target of $133.00, the upside potential is about 47%.

First-quarter revenue is forecast at $16.94 billion, which would be down 16.6% sequentially and about 1.0% lower year over year. Adjusted earnings per share (EPS) are forecast at $0.20, down 78.6% sequentially and 16.7% year over year. For the full 2022 fiscal year, analysts currently expect GE to report EPS of $3.27, up nearly 55%, on sales of $77.64 billion, or 4.6% higher.

GE stock trades at 27.7 times expected 2022 EPS, 16.7 times estimated 2023 earnings of $5.43 and 13.6 times estimated 2024 earnings of $6.66 per share. The stock’s 52-week range is $85.29 to $116.17 (split-adjusted), and GE pays an annual dividend of $0.32 (yield of 0.35%). Total shareholder return for the past 12 months was negative 14.5%.

Read Full Story »»»

DiscoverGold