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General Electric (GE) to Post Q3 Earnings: What's in Store?

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General Electric Company GE is scheduled to report third-quarter 2021 results on Oct 26, before market open.

The company delivered better-than-expected earnings in three of the last four quarters and met estimates once. The average earnings surprise for the four quarters is 79.17%. In the last reported quarter, the company reported earnings of 40 cents per share, surpassing the Zacks Consensus Estimate of 24 cents by 66.67%.

In the past three months, shares of the company have gained 1.4% compared with the industry’s growth of 0.4%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let us delve deeper.

Key Factors and Estimates for Q3

Solid product offerings, focus on product innovations, investments for technological advancements and a surge in the digital business are expected to have aided General Electric in the third quarter. Also, healthy liquidity position, efforts to lower debts, cost-reduction measures and acquired assets are anticipated to have been other tailwinds.

The Zack Consensus Estimate for General Electric’s earnings for the third quarter is pegged at 41 cents, suggesting a decline of 14.6% from the year-ago reported figure and sequential growth of 2.5%. The consensus estimate for revenues of $19,126 million suggests a 1.5% decrease from the year-ago quarter’s reported figure and 4.6% growth sequentially.

For the Healthcare segment, product introductions and investments in innovations are likely to have aided the performance. Also, a surge in volumes of global procedures and synergistic gains from acquired assets is expected to have boosted the company’s performance. Supply-chain issues are anticipated to have continued to be spoilsports. The Zacks Consensus Estimate for Healthcare revenues stands at $4,560 million, implying a 0.1% decrease from the prior-year reported figure and 2.4% growth sequentially.

For the Power segment, order wins and tough services business are expected to have influenced the third-quarter performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $3,680 million, suggesting a decline of 8.6% from the year-ago reported figure and a 14.3% decrease sequentially.

For the Aviation segment, the persistent market-related challenges, especially in the Asia Pacific and China, and inflationary woes are likely to have played spoilsports in the quarter under review. Efforts to rebound the business are likely to have aided. The use of narrow-bodied aircraft is likely to have been better than the wider-bodied aircraft. The Zacks Consensus Estimate for the segment’s revenues is pegged at $5,693 million, indicating a 15.7% increase from the year-ago reported figure and 17.6% growth sequentially.

For the Renewable Energy segment, weak onshore wind markets in the United States and inflationary woes are likely to have impacted the performance. However, solid contract wins and business expansion in international markets are likely to have aided. The consensus estimate for the segment’s revenues is pegged at $4,492 million for the third quarter, suggesting a 0.7% decline from the year-ago quarter’s reported number and a 10.9% increase from the previous quarter’s figure.

The Zacks Consensus Estimate for the Industrial segment’s (comprising Power, Aviation, Renewable Energy and Healthcare) revenues for the to-be-reported quarter is pegged at $18,425 million, suggesting a 3.1% increase from the year-ago quarter’s reported number and 0.8% growth from the second-quarter figure. Profit for the Industrial segment is likely to be $1,519 million for the third quarter of 2021. Meanwhile, a loss of $1,296 million was delivered in the year-ago quarter, while a profit of $604 million was recorded in the previous quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for General Electric this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with General Electric as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: General Electric has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 41 cents.

General Electric Company Price, Consensus and EPS Surprise

General Electric Company Price, Consensus and EPS Surprise
General Electric Company Price, Consensus and EPS Surprise

General Electric Company price-consensus-eps-surprise-chart | General Electric Company Quote

Zacks Rank: General Electric currently carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Here are some companies that you may want to consider as according to our model, these have the right combination of elements to beat on earnings this season:

Reliance Steel & Aluminum Co. RS presently has an Earnings ESP of +3.54% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Columbus McKinnon Corporation CMCO currently has an Earnings ESP of +5.26% and a Zacks Rank #2.

Plug Power, Inc. PLUG presently has an Earnings ESP of +2.33% and a Zacks Rank of 3.


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General Electric Company (GE) : Free Stock Analysis Report

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Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report

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