General Electric Company (GE) is a high-tech industrial company that operates in the Americas, Europe, The Middle East, Africa, and Asia.
Recent Earnings Report
In its most recent fiscal Q3 2023 earnings report, the company reported better-than-expected figures. The figures were due to strong demand for its commercial engines and services. In its earnings report, the company reported earnings per share of 82 cents, against a forecast of 56 cents, a staggering surprise of 46.28%. GE stock has consistently beaten analysts’ estimates by an average of 49.74% in the past four quarters.
Revenue also grew 19.9% to reach $17.35 billion, better than the analysts’ forecast of 15.69 billion, a surprise of 10.55%. A huge chunk of that revenue came from GE Aerospace and GE Vernova, each of which reported $8.41 billion and $8.13 billion, respectively. Based on the figures, the company has had a revenue growth of 23.24% for the past 12 months.
Another positive development was that total orders in Q3 grew by 19%, to $17.9 billion, while free cash flow grew to $1.67, more than double the previous quarter. Due to the positive numbers, GE stock has upgraded the full-year EPS guidance from $2.10-$2.30 to $2.55-$2.65.
Plans to Become a Standalone Aerospace Company
General Electric plans to become a standalone aerospace company by 2024. It is working towards an NYSE spinoff for GE Vernova under the ticker GEV. After the spinoff, GE Aerospace and GE Vernova will operate as independent companies by Q2 2024. After the breakup, GE Aerospace will expand into new segments of the aerospace sector.
GE Stock Performance and Forecast
GE stock has had a great year. It has seen gains of 70.47% year-to-date. Analysts give the stock a moderate, with a price target of $122.71, an upside of 8.6% based on the current price of $113 per share as of 11:15 AM EDT, October 25, 2023.
Should You Buy GE Stock?
General Electric is a major player in the high-tech industrial sector, with a market cap of $123.70 billion. The company expects to grow its net income for FY 2023, and its debt level is moderate.
These factors, combined with the figures released in recent quarterly reports, make GE stock worth considering.
As with any investment, it is important to weigh your decision based on as much insight as possible. Consider your risk appetite, macroeconomic factors, and much more when deciding to add GE stock to your portfolio.
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