GE Aerospace (GE)

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

• Here is a look at four companies set to report results before Tuesday’s open.

General Electric

Over the past 12 months, shares of General Electric Co. (NYSE: GE) have slipped by nearly 33%. The shares dipped to their 52-week low just last week. Last November, the company said it planned to spin off its health care and energy businesses into separate companies and become primarily an aviation company.

Earlier this week, it announced that the health care company would be named GE Healthcare when it is spun off early next year, the energy business would be known as GE Vernova after its 2024 spin-off and the aviation business would be named GE Aerospace. Boring, perhaps, but perhaps a little less excitement at GE after three decades of rattle and hum is not such a bad thing.

Analysts remain bullish on the stock. There are 15 Buy or Strong Buy ratings and six Hold ratings among the 21 brokerages covering the stock. At a share price of around $68.10, the potential upside to a median price target of $90.00 is about 32.2%. At the high target of $129.00, the upside potential is 89.4%.

Second-quarter revenue is forecast at $17.94 billion, up about 5.1% sequentially but down about 2% year over year. Adjusted EPS are forecast at $0.42, up 75.8% sequentially and 52.6% higher year over year. For full fiscal 2022, analysts expect GE to report EPS of $2.81, up 32.5%, on sales of $77.44 billion, up 1.7%.

GE stock trades at 24.3 times expected 2022 EPS, 14.4 times estimated 2023 earnings of $4.72 and 11.6 times estimated 2024 earnings of $5.90 per share. The stock’s 52-week range is $59.93 to $116.17, and GE pays an annual dividend of $0.32 (yield of 0.47%). Total shareholder return for the past 12 months was negative 34.7%.

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