- FY Adjusted EPS Projection: GE now expects adjusted EPS between $3.95 and $4.20, up from a previous range of $3.80 to $4.05. The market estimate was $4.03.
- Full-Year Operating Profit: Projected to be between $6.5 billion and $6.8 billion, an increase from the prior range of $6.2 billion to $6.6 billion. The market estimate was $6.67 billion.
- Adjusted Free Cash Flow Estimate: GE forecasts free cash flow between $5.3 billion and $5.6 billion, compared to an estimate of $5.29 billion.
- Second Quarter Adjusted EPS: Achieved $1.20 per share, up from 74 cents year-over-year, beating the estimate of 99 cents.
- EPS from Continuing Operations: Also reported at $1.20.
- Second Quarter Adjusted Revenue: Reached $8.22 billion, a 4% increase year-over-year but below the estimate of $8.44 billion.
- Second Quarter Adjusted Free Cash Flow: Was $1.10 billion, up 17% year-over-year, surpassing the estimate of $967.5 million.
- CEO’s Comments: The CEO highlighted strong performance in GE Aerospace, with double-digit growth in orders, operating profit, and free cash flow.
- Performance and Forecast: The CEO emphasized that the company is raising its full-year profit and free cash flow guidance due to strong performance year-to-date and momentum in its businesses.
- Strategic Priorities: The CEO mentioned accelerating actions and leveraging the FLIGHT DECK to resolve supply constraints and meet customer demand, reiterating the commitment to advancing strategic priorities to create exceptional value for shareholders.
General Electric on Smartkarma
Analyst coverage of General Electric on Smartkarma indicates a positive outlook for the company’s future. Baptista Research, a reputable analyst, has published insights on various aspects of General Electric’s performance and potential. In a recent report titled “General Electric Company: Is The Healthy Demand In Renewables Here To Stay? – Major Drivers,” Baptista Research emphasized GE’s strategic restructuring efforts in aerospace and defense, following successful spin-offs in healthcare. The analyst evaluates factors influencing the company’s stock price and conducts an independent valuation using a Discounted Cash Flow methodology.
Furthermore, Baptista Research highlights General Electric’s robust performance in their report “General Electric Company: These Are The 6 Fundamental Factors Driving Its Performance In 2024 & Beyond! – Financial Forecasts.” Based on the Fourth Quarter 2023 Earnings Conference Call, GE showed positive progress by tripling earnings and generating increased free cash flow. GE Aerospace and GE Vernova were instrumental in these achievements, with double-digit revenue growth attributed to strong demand in commercial engines and services.
A look at General Electric Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Electric Company, a globally diversified technology and financial services giant, has received solid Smart Scores across the board. With a high Growth score of 5 and a Resilience score of 4, the company shows promising long-term potential for expansion and ability to weather economic uncertainties. Coupled with average scores in Value, Dividend, and Momentum, General Electric’s overall outlook seems optimistic for the future.
General Electric, known for its wide array of products and services ranging from aircraft engines to household appliances and financial solutions, appears well-positioned to capitalize on its strengths in various sectors. Investors may find the combination of growth prospects and resilience indicators attractive, as the company continues to navigate the market dynamics and leverage its diverse portfolio to drive long-term value creation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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