NEW YORK (TheStreet) --Siemens AG (SIEGY) and Mitsubishi Heavy Industries (MHVYF) increased their joint bid on Alstom's energy business by 1 billion euros to 8.2 billion euros on Friday, Reuters reports.
The two companies raised their bid in the hopes it would get General Electric Co. (GE) to back off and not submit a revised offering before the June 23 deadline.
On Thursday, GE submitted a revised plan for Alstom's energy business by offering to create three new joint ventures with Alstom, and sell the company its signaling business, but GE did not raise its original $17 billion bid.
Alstom was getting ready to sell GE its energy business weeks ago but the French government stepped in giving itself the right to veto any deal that did not protect French jobs within the industry. The government is expected to announce it preference before Alstom's board meets to make a decision on June 23. Shares of GE are up slightly in early morning trade.. Separately, TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate GENERAL ELECTRIC CO (GE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GE's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $4,961.00 million or 7.61% when compared to the same quarter last year. In addition, GENERAL ELECTRIC CO has also modestly surpassed the industry average cash flow growth rate of 3.57%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GENERAL ELECTRIC CO's earnings per share declined by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL ELECTRIC CO increased its bottom line by earning $1.47 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $1.47).
- The gross profit margin for GENERAL ELECTRIC CO is rather high; currently it is at 51.60%. Regardless of GE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.82% trails the industry average.
- You can view the full analysis from the report here: GE Ratings Report
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