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General Electric Q4 Earnings Preview General Electric (GE) Q4 Earnings: Can Aerospace Boost Deliver Victory?

General Electric Company (GE) is scheduled to report its fourth-quarter 2023 results on Jan 23 before the market opens.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings has decreased slightly in the past 60 days. Nonetheless, General Electric has a stellar earnings surprise history, outperforming the consensus estimate in each of the preceding four quarters, with an average beat of 53.4%.

Let’s dive into the factors influencing General Electric’s upcoming earnings report.

Factors Driving General Electric

Robust commercial aerospace, a surge in LEAP engine deliveries, and an uptick in demand for commercial engines and services are anticipated to have propelled GE’s Aerospace segment in the fourth quarter of 2023. Expansion in defense engine orders is also likely to have contributed to its performance.

Meanwhile, GE’s Renewables segment is capitalizing on heightened equipment demand in the Grid business, fueled by robust European interest in High Voltage Direct Current solutions and the strength of the Onshore Wind business in North America.

The growth in heavy-duty gas turbines and aero derivatives is expected to have bolstered the performance of GE’s Power segment in the fourth quarter. However, the decline in Steam Power equipment due to the ongoing exit of newly built coal may have hampered the segment’s results.

The acquisition of Nexus Controls in April 2023 is likely to have supported GE’s performance in the fourth quarter. Nevertheless, the potential impact of raw material cost inflation, especially in the defense market, and forex headwinds may have affected the company’s bottom line.

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Analyst Insights & Previous Performance

Despite the challenges, the consensus estimate for GE’s fourth-quarter 2023 revenues points to an 18.5% decline from the year-ago figure, but sequential growth of 7.5%.

One prominent source suggests that GE is likely to deliver an earnings beat this time around, considering the combination of a positive Earnings ESP and its favorable Zacks Rank.

General Electric’s previous earnings report for the third quarter of 2023 showed an adjusted earnings per share of 82 cents, surpassing the Zacks Consensus Estimate and registering a 134.3% year-over-year increase. Meanwhile, total revenues of $17,346 million exceeded the consensus estimate and represented a 19.9% year-over-year upsurge.

Other Companies in the Industry

ITT Inc. and Danaher Corporation are two other companies from the same industry expected to outperform based on Zacks’ model. ITT Inc. and Danaher Corporation are showing favorable Earnings ESPs and have earned Zacks Ranks of 2 and 3, respectively, implying potential for earnings beats in their upcoming reports.

3M Company is another player projected to deliver robust fourth-quarter earnings based on its Earnings ESP and Zacks Rank. This suggests that the company is well-positioned to outperform in its report.

Keep track of upcoming earnings announcements with the Zacks Earnings Calendar.