General Electric Earnings Could Be 'Unfavorable,' JPMorgan Analyst Warns
General Electric Co.'s (GE) - Get Report next earnings report is likely to be "unfavorable," according to JPMorgan analyst Stephen Tusa.
Shares of the Boston-based conglomerate fell 1.8% to $8.73 at the close of trading on Tuesday.
Tusa said in a note to investors that he believes "the recent stock move is built upon an expectation of more certainty in the path forward."
GE is scheduled to report fourth-quarter earnings on Jan. 31. Tusa said in his note that "if we don't get much tangible, it will reinforce the Bear case that there is no concrete silver bullet plan." Tusa maintained a neutral rating on General Electric with a price target of $6.
Noting the company's "myriad of moving parts," Tusa said uncertainty comes from questions about the financial future of the company as well as the scope of GE's persisting issues.
GE shares climbed last week after a report suggested Apollo Global Management (APO) - Get Reportcould be preparing a $40 billion bid for the group's airplane leasing division.
GE last reported earnings results on Oct. 30. The company reported earnings of 14 cents a share for the quarter, missing analysts' expectations of 20 cents. Revenue totaled $29.57 billion for the quarter, compared with analysts' expectations of $30.08 billion.
The company posted earnings of 29 cents a share in the year ago period and revenue was down 3.6% from the same quarter last year.
