GE Aerospace (GE)

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Earnings Preview: General Electric Co. (NYSE: GE)
By: 24/7 Wall St. | October 21, 2022

• Here is a look at four companies on deck to report results first thing Tuesday morning.

General Electric

Over the past 12 months, shares of General Electric Co. (NYSE: GE) have slipped by more than 31%. The shares dipped to their 52-week low in early July and have bounced higher and lower again since then.

Last November, GE said it planned to spin off its health care and energy businesses into separate companies and become primarily an aviation company. GE is downsizing its corporate headquarters in Boston, leaving Manhattan, and looking for a buyer for its campus in Crotonville, New York. The Financial Times reported last week that France’s EDF is offering a low-ball price ($160 million to $180 million) for GE’s nuclear turbine business due to the segment’s dealings with Russia’s Rosatom.

Analysts remain bullish on the stock. There are 16 Buy or Strong Buy ratings and six Hold ratings among the 22 brokerages covering GE. At a recent price of around $70.50 a share, the potential upside to a median price target of $84.00 is about 19.1%. At the high target of $122.00, the upside potential is 73%.

Third-quarter revenue is forecast at $18.81 billion, which would be up about 0.9% sequentially and 2.1% higher year over year. Adjusted EPS are forecast at $0.49, down 37.6% sequentially and by 14.0% year over year. For the full 2022 fiscal year, analysts expect GE to report EPS of $2.68, up 26.5%, on sales of $74.78 billion, up 0.8%.

GE stock trades at about 15.6 times expected 2022 EPS, 11.7 times estimated 2023 earnings of $6.04 and 8.4 times estimated 2024 earnings of $8.37 per share. The stock’s 52-week trading range is $59.93 to $116.17, and GE pays an annual dividend of $0.32 (yield of 0.46%). Total shareholder return for the past 12 months was negative 31.2%.

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