General Electric (GE) Arm Wins 1st Cypress Turbine Deal in Spain
General Electric Company’s GE business GE Renewable Energy recently announced that it has clinched an onshore wind turbine supply contract from Azora for its Cuevas de Velasco wind farm, based in Cuenca province, Spain. Notably, this marks General Electric’s first ever contract for its Cypress platform in the country. Separately, the company’s Grid Solutions unit clinched a contract from SSEN Transmission.
General Electric’s shares moved up 1.6% to close at $10.60 yesterday.
Inside the Headlines
As noted by General Electric, it will produce and supply 19 Cypress wind turbine units, carrying 158m of a rotor diameter. The turbines will be capable of operating at 5.5 MW. Notably, the deal will help Azora’s 100-MW wind farm to produce in excess of 300,000 MWh of electricity every year, thus catering to consumers’ growing requirements of renewable and sustainable energy.
Featuring a higher efficiency in service ability and an improved level of annual energy production, the company’s Cypress onshore wind turbines also helps in improving logistics, thus delivering more value to its customers.
In addition, General Electric will be responsible for providing operational services in the facility for 30 years. It’s worth noting here that the blades for the Cypress units are to be supplied by the company’s business unit — LM Wind Power.
In addition, General Electric’s Grid Solutions unit — part of its GE Renewable Energy business — secured a deal from SSEN Transmission. Per the deal, it will produce, supply and commission a 420 kilovolt (kV) Green Gas for Grid (g³) gas-insulated substation at SSEN Transmission’s Kintore 400 kV substation in Aberdeenshire, Scotland.
Zacks Rank, Price Performance and Estimate Trend
General Electric, with $92.9 billion market capitalization, currently carries a Zacks Rank #3 (Hold). Going forward, the company stands to benefit from its portfolio restructuring program, expansion in digital business, strong liquidity position and efforts to deleverage balance sheet. However, market challenges related to the coronavirus pandemic remains concerning for the near term.
In the past three months, its share price has increased 65.4% compared with the industry’s growth of 21.1%.
In the past 30 days, the Zacks Consensus Estimate for General Electric’s bottom line for 2020 has gone up from a loss of 3 cents to earnings of 4 cents, owing to three upward estimate revisions versus one downward. The consensus estimate for its earnings for 2021 has declined from 29 cents to 28 cents due to one upward and two downward estimate revisions.
Key Picks
Some better-ranked stocks from the same space are 3M Company MMM, ITT Inc. ITT and Danaher Corporation DHR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3M delivered a positive earnings surprise of 1.85%, on average, in the trailing four quarters.
ITT delivered a positive earnings surprise of 22.39%, on average, in the trailing four quarters.
Danaher delivered a positive earnings surprise of 17.00%, on average, in the trailing four quarters.
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