Back to top

Image: Bigstock

What's in the Offing for General Electric's (GE) Q2 Earnings?

Read MoreHide Full Article

General Electric Company (GE - Free Report) is scheduled to report second-quarter 2023 results on Jul 25, before market open.

The Zacks Consensus Estimate for the company’s second-quarter earnings has increased by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters, while missing in one, the average beat being 49.8%.

Let’s see how things are shaping up for General Electric this earnings season.

Factors to Note

Lower onshore wind deliveries and repower upgrades due to the lapse of the U.S. Production Tax Credit (PTC) in 2022 are expected to have dented Renewable Energy segment’s revenues in the second quarter. Also, weak demand is likely to have affected the onshore wind unit in the to-be-reported quarter.

Supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the defense market, are expected to have weighted on General Electric’s performance in the to-be-reported quarter.

Given General Electric’s significant global present, foreign currency headwinds are likely to have impacted the company’s top-line performance in the second quarter.

However, continued recovery in the commercial market and robust consumer demand are expected to have benefited the Aerospace unit in the to-be-reported quarter. The Zacks Consensus Estimate for the Aerospace segment’s revenues in the second quarter indicates a 7.1% jump sequentially.

General Electric Company Price and EPS Surprise

 

General Electric Company Price and EPS Surprise

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

The acquisition of Nexus Controls (April 2023), which allows the creation of a single, full-service controls business line for further development of GE’s proprietary Mark Vle controls systems platform, is expected to have boosted the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for GE’s second-quarter 2023 revenues suggests a 3.5% rise sequentially.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for GE 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, which is not the case here, as elaborated below.

Earnings ESP: GE has an Earnings ESP of -0.48%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: GE presently carries a Zacks Rank of 3.

Highlights of Q1 Earnings

General Electric reported first-quarter 2023 adjusted earnings of 27 cents per share, which beat the Zacks Consensus Estimate of adjusted earnings of 13 cents per share. The bottom line increased 12.5% year over year. Total revenues of $14,486 million beat the consensus estimate of $13,395 million. The top line increased 14.3% year over year.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Allegion plc (ALLE - Free Report) has an Earnings ESP of +3.94% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release second-quarter results on Jul 26. ALLE’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.5%.

Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3. The company is slated to release second-quarter 2023 results on Aug 2.

Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


GE Aerospace (GE) - free report >>

Ingersoll Rand Inc. (IR) - free report >>

Allegion PLC (ALLE) - free report >>

Published in