3Q Drops Below Consensus
Nigel Coe, an analyst at the firm, said he is lowering his third-quarter earnings per share estimate by a penny, below the consensus, citing O&G headwinds and negative power price/mix. However, the analyst sees 0–1 percent revenue growth due to phasing of gas turbine shipments and continued strong growth in power services and aviation services.
Largely Steady On FY16, FY17
The analyst said he is steady at $1.50 for 2016 and has largely maintained his 2017 earnings per share estimate at $1.67, as weaker transportation and aviation sales are offset by stable aviation margins, assumed payback on aggressive restructuring and footprint actions on O&G, lighting and healthcare segments.
FY18 Estimate Lowered
However, Morgan Stanley lowered its 2018 earnings per share estimate to $1.84 from $1.91, further below the company's $2 target. The firm premised the action on risk to aviation margins arising out of the change in the revenue recognition accounting and scale back on its $35 billion share buyback plan.
That said, the firm believes the company will maintain its long term targets. Nevertheless, the firm also believes the stocks could continue to de-rate as consensus estimates re-base lower. The price target stands trimmed by a dollar to $31.
At time of writing, shares of General Electric were down 0.51 percent at $29.35.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.