GE Earnings on Deck

S&P 500 (NYSE:SPY) component General Electric (NYSE:GE) will unveil its latest earnings tomorrow morning, Friday, October 19, 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 profit of 37 cents per share, a rise of 19.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 36 cents during the last month. Analysts are projecting profit to rise by 20.9% versus last year to $1.56.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 38 cents per share versus a mean estimate of profit of 37 cents per share.

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A Look Back: In the second quarter, profit fell 17.5% to $3.1 billion (29 cents a share) from $3.76 billion (35 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.5% to $36.5 billion from $35.63 billion.

Stock Price Performance: Between July 20, 2012 and October 15, 2012, the stock price rose $2.77 (13.9%), from $19.87 to $22.64. 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.

Wall St. Revenue Expectations: Analysts are projecting a rise of 4.1% in revenue from the year-earlier quarter to $36.81 billion.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 1.5% in the third quarter of the last fiscal year, 5.7% in the fourth quarter of the last fiscal year and 8.5% in the first quarter before climbing in the second quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 17.8% in the fourth quarter of the last fiscal year, by 11.6% in the first quarter and again in the second quarter.

Analyst Ratings: There are eight out of 12 analysts surveyed (66.7%) rating General Electric a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.14 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.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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