U.S. Markets close in 3 hrs 19 mins

GE Extends Partnership With Teradata for Aviation Products

Zacks Equity Research
1 / 2

GE Extends Partnership With Teradata for Aviation Products

GE's operating segment, GE Aviation enters into a deal with Teradata (TDC) to serve as the sole provider of Teradata products and services for commercial aviation markets.

General Electric Company’s GE operating segment, GE Aviation recently entered into a deal with Teradata Corporation TDC, a leading provider of database and analytics-related products and services. Per the deal, GE Aviation will serve as the sole provider of Teradata products and services for commercial aviation markets. Notably, GE Aviation will offer airlines with a single framework, which combines analytics in the cloud from Teradata with its own edge-connectivity services.

Earlier, GE Aviation and Teradata had collaborated to jointly provide products and services to commercial aviation markets. The recent deal marks the extension of the partnership, which will offer wide-range of operational insights to airlines that will drive their business decisions.

Recently, GE communicated plans to restructure its business portfolio. It plans to exit the oil and gas businesses by disposing of its 62.5% interest stake in Baker Hughes, a GE company BHGE.Notably, Baker Hughes recently announced that it has signed two deals to sell its Natural Gas Solutions (“NGS”) business to First Reserve and Pietro Fiorentini S.p.A. The combined value of both the deals has been fixed at $375 million.

In one of the deals, Baker Hughes decided to sell its NGS product line to First Reserve, a global energy-focused private equity firm. This transaction involves the transfer of about 450 employees in eight countries that include three manufacturing sites in North America and the United Kingdom.

In the other deal, Italy-based Pietro Fiorentini S.p.A. will acquire the Talamona branch of Baker Hughes’ NGS product line. It involves the transfer of about 40 employees as well as a manufacturing site in Talamona, Italy.

Both the deals, currently subjected to the fulfilment of customary closing conditions and receipt of regulatory approvals, are anticipated to close in the second half of 2018. However, financial details of the individual agreements have been kept under wraps.

Existing Business Scenario

GE is poised for long-term growth with improved performance from the emerging markets like India and China. The company has decided to focus on its three core businesses — Aviation, Healthcare and Power. To achieve this, the company has decided to sell assets worth $20 billion to realign its portfolio and improve liquidity.

In the past six months, this Zacks Rank #4 (Sell) stock has lost 15% compared with the industry’s decline of 9.7%.

 

Nonetheless, the company’s stringent cost-cutting and simplification initiatives are anticipated to improve its profitability, moving ahead. Furthermore, GE generates solid cash flow, which allows it to invest in product innovations, acquisitions and business development.

Stock to Consider

A better-ranked stock from the same space is Raven Industries, Inc. RAVN. Raven sports a Zacks Rank #1 (Strong Buy) You can see the complete list of today’s Zacks #1 Rank stocks here.

The company outpaced estimates twice in the preceding four quarters with an average positive earnings surprise of 9.78%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Teradata Corporation (TDC) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Raven Industries, Inc. (RAVN) : Free Stock Analysis Report
 
Baker Hughes, a GE company (BHGE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research