GE shares at last check were 1.1% higher at $11.80 in Monday trading. They'd fallen more than 2% Friday.
Deutsche Bank expects General Electric to report fourth-quarter earnings of 19 cents a share, topping the consensus analyst estimate of 18 cents. That beat will be driven by quarter-to-quarter improvements within the company’s four business segments.
- Power-segment sales are expected to increase $26 million, compared with a decline of $144 million in the previous quarter.
- Renewables sales are expected to increase $322 million, compared with a $98 million decline in the previous quarter.
- Aviation sales are expected to be $1.79 billion in the fourth quarter, compared with $1.72 billion in the previous period.
- Healthcare revenue is expected to be $1.22 billion, compared with $970 million in the third quarter.
“It is difficult to identify positive catalysts this quarter, given that sell-side consensus forecasts generally remain too high,” DB’s note said.
“Despite GE's recent share-price outperformance, we see the potential for a result consistent with our expectation to drive continued upward momentum in the stock price.”
GE shares have risen nearly 40% over the past 12 months.
GE still faces headwinds. The market is looking for an update from management on the impact of the grounding of Boeing’s (BA) - Get Report 737 MAX on the company as well as concerns about industrial free cash flow.