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S&P 500 (NYSE:SPY) component General Electric (NYSE:GE) will unveil its latest earnings tomorrow, Friday, July 20th, 2012. General Electric is an advanced technology, services and finance company that provides services ranging from aircraft engines to business and consumer financing.
General Electric Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 37 cents per share, a rise of 12.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 38 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 37 cents during the last month. Analysts are projecting profit to rise by 20.2% compared to last year’s $1.55.
Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 34 cents per share against the mean estimate of 33 cents. In the prior quarter, the company reported net income of 39 cents.
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A Look Back: In the first quarter, profit fell 11.6% to $3.03 billion (29 cents a share) from $3.43 billion (31 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 8.5% to $35.18 billion from $38.45 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.1 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.73 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 28% to $212.74 billion while assets decreased 1.5% to $446.3 billion.
Stock Price Performance: Between May 17, 2012 and July 18, 2012, the stock price had risen 84 cents (4.42%), from $19 to $19.84. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 19, 2012, when shares rose for 10 straight days, increasing 9.7% (+$1.79) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 4.5% (-89 cents) over that span.
On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 4.9% in the second quarter of the last fiscal year, 1.5% in third quarter of the last fiscal year and 5.7% in the fourth quarter of the last fiscal year and then fell again in the first quarter.
After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 17.8% in the fourth quarter of the last fiscal year and then again in the first quarter.
Wall St. Revenue Expectations: Analysts are projecting a rise of 3.3% in revenue from the year-earlier quarter to $36.8 billion.
Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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