General Electric Company (NYSE: GE) is slated to release its third-quarter earnings results on Wednesday before the bell. The industrial conglomerate’s results will be hurt by constant weakness in the Power segment, poor margin from Renewable Energy, and unfavorable foreign currency movements.
Check out GE’s live earnings coverage: General Electric (GE) outpaces Q3 2019 estimates; progresses on transformation
However, the company could be positively impacted by the efforts in debt reduction and restructuring, solid international presence, and digital business. GE has decided to freeze pension plans in order to cut down debt and improve its financial position. The GE Capital business will experience solid liquidity position and lower exposure initiatives.
The top line will be hurt by sales of Industrial Solutions, Value-Based Care and Distributed Power businesses. On the other hand, the bottom line will be impacted by non-cash goodwill impairment charge, increased losses from disposed or held for sale businesses, and investments. This also includes adjusted corporate operating costs.
Analysts expect the company’s earnings to drop by 21.40% to $0.11 per share and revenue will dip by 22.5% to $22.93 billion for the third quarter. The company has surprised investors by beating analysts’ expectations twice in the past four quarters. The majority of the analysts recommended a “strong-buy” or “buy” rating with an average price target of $10.11 per share.
For the second quarter, General Electric slipped to a loss from a profit last year, due to a non-cash goodwill impairment charge related to Grid Solutions equipment and services. A 4% decline in the total orders dragged the total revenues down by 1%. Margins contracted due to declines in Power, Renewable Energy and to a lesser extent Aviation.
For the full year 2019, the company expects Industrial segment organic revenue growth in the mid-single digits range. Adjusted earnings are anticipated to be in the range of $0.55 to $0.65 per share for the full year. GE continues to expect adjusted Industrial free cash flow to be in positive territory in 2020 with further acceleration in 2021.
Most Popular
Key metrics from Shopify’s (SHOP) Q1 2024 earnings results
Shopify Inc. (NYSE: SHOP) reported first quarter 2024 earnings results today. Revenue increased 23% to $1.9 billion compared to the prior-year period. Gross Merchandise Volume (GMV) increased 23% year-over-year to
EA Earnings: Electronic Arts reports lower revenues for Q4 2024
Video game publisher Electronic Arts (NASDAQ: EA) Tuesday reported a decline in revenues for the fourth quarter of 2024. Meanwhile, the top line came in slightly above analysts' estimates. Fourth-quarter
What to look for when Home Depot (HD) reports Q1 2024 earnings
Shares of The Home Depot (NYSE: HD) stayed red on Tuesday. The stock has gained 17% over the past 12 months. The home improvement retailer is scheduled to report its
