General Electric

The following is a summary of the GE Electric Company (GE) Q1 2024 Earnings Call Transcript: Financial Performance: GE reported a Q1 increase in profits with a revenue increase of 10% across all segments. An operating profit of $1.5 billion was reported, which was a rise of over $600 million, attributing to 300 basis points of organic margin expansion mainly due to pricing and volume. The massive year-over-year increase in Adjusted EPS was notable at $0.82, more than thrice the previous amount. GE reported its Q1 free cash flow at $850 million, a significant rise of over 5x primarily due to higher earnings and reduction in working capital. GE Aerospace made a significant contribution with double-digit growth in revenue and profit, and free cash flow doubled over the year. Business Progress: The completion of GE Vernova’s spin-off and a successful $100 billion debt reduction since 2018 marked valuable progress. GE […]

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $167, raised $20, reflects a 29x multiple of our projected 2025 EPS. The applied multiple is above that of our aerospace universe average, but merited, in our view, by improving aftermarket services results. We cut our 2024 EPS estimate by $0.36 to $4.00 and lift 2025’s by $0.30 to $5.75. Q1 EPS of $0.82 vs. $0.27, beat the consensus view by $0.12. GE Aerospace orders rose 34% Y/Y, with roughly similar growth rates in both CES (commercial aerospace) and DPT (defense) segments. We see CES as benefiting from demand for commercial aircraft, both for new planes as well as for servicing older aircrafts. Q1 revenues in CES rose 16%, benefiting from pricing traction and volume growth. GE is also working with key

JP Morgan analyst Seth Seifman upgrades General Electric (NYSE:GE) from Neutral to Overweight and raises the price target from $166 to $180.

JPMorgan says General Electric has proven itself as the premier large-cap name in commercial aerospace in terms of where it stands in the business cycle, its balance sheet and management team. The analysts raise GE’s rating to overweight from neutral noting that the stock has already outperformed the broader market by 22% year-to-date. “Valuation is an obstacle for the stock but it is the only obstacle for us right now and instead of trying to time the market, we are overweight on the stock,” the analysts say.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $174, up $34, reflects a 29x multiple applied to our 2025 EPS estimate, in line with GE’s aerospace peers. We lift our 2024 EPS estimate by $0.09 to $4.58 and 2025’s by $0.17 to $5.99. The spinoff of GE’s renewables and power unit, GE Vernova, has now been officially slated for April 2, 2024, and GE will be a pure-play aerospace firm thereafter. We like GE’s prospects as a key supplier to a commercial aerospace industry that has considerable pent-up demand for new planes. However, we do see some risk for GE, notably its reliance on major original equipment manufacturer The Boeing Company (BA 200 **). In our view, BA is facing a bit of a high wire act, trying to iron

General Electric’s (GE) valuation is expected to receive a boost from the improving free cash flow of its renewable energy business, GE Vernova, BofA Securities said in a report Thursday. The brokerage maintained its buy rating on the stock as it raised its price target to $175 from $162, taking into account GE Vernova’s “better FCF trajectory” and GE Aerospace’s revenue growth visibility. GE Vernova, which is expected to spin off from GE on April 2, reaffirmed its full-year 2024 outlook on Wednesday for revenue of $34 billion to $35 billion, with an adjusted EBITDA margin being at the higher end of the mid-single digit range. The guidance looks conservative as GE Vernova’s backlog “provides a high degree of visibility, with [about] 50% of 2025 revenue already in the backlog,” BofA said. “The pending spinoff of Vernova creates a catalyst for re-rating over time. Over the medium term, improving FCF

JP Morgan analyst Seth Seifman maintains General Electric (NYSE:GE) with a Neutral and raises the price target from $134 to $166.

Barclays analyst Julian Mitchell maintains General Electric (NYSE:GE) with a Overweight and raises the price target from $153 to $181.

General Electric Vernova Is Expected to Spin Off From GE in Early April, Subject to Final Approval From the GE Board and Other Customary Conditions.

General Electric late Thursday filed a long-awaited form with the Securities and Exchange Commission that provides investors with key details about the upcoming breakup of the company into GE Aerospace and GE Vernova. The Form 10 filing is used to register new securities. In this case, the securities are for GE Vernova — the power generation company inside of GE that officially is being spun off. The Form 10 runs 272 pages. Here are a few things Barron’s took from the filing along with a little context. No Debt GE Vernova will start life with more cash than debt. In fact, it won’t have any debt at all. The cash balance should be about $4.2 billion at the time of the spinoff. That will leave GE Aerospace with about $15 billion in cash and $18 billion in debt. GE also is, essentially, paying back about $1 billion in debt using

The following is a summary of the General Electric (GE) Q4 2023 Earnings Call Transcript: Financial Performance: GE experienced substantial growth in 2023 with tripled earnings and a 70% increase in free cash flow. Its Aerospace, Renewable Energy, and Power segments exhibited strong financial performance with positive profits and free cash flow. Debt was reduced by over $100 billion and shareholders were returned $7 billion. Q4 orders topped $5 billion, with annual orders reaching $23 billion, a roughly 50% increase. Revenue for Renewable Energy and Power businesses grew in double digits, contributing to overall revenue growth. Profits surpassed $1 billion, with Renewable Energy showing over $100 million growth. Free cash flow however was slightly negative. Business Progress: 2024 saw the launch of GE Aerospace and GE Vernova, with the latter focusing on electrification and decarbonization of the globe. GE Aerospace engine deliveries were up 11% and secured over 450 engine

RBC Trims Price Target on General Electric to $148 From $150, Notes ‘Incremental Aerospace Burden,’ Keeps Outperform Rating.