Rebuilding GEGE updated its guidance when unveiling bigger news last month. Three weeks ago, the company announced another major acquisition. It laid out plans to purchase InVision Technologies ( INVN) for $900 million in an effort to aggressively expand its high-margin security business. By then, the company had already launched two other -- substantially larger -- acquisitions that were meant to drive earnings growth.
GE over a year
GE will close Thursday on its $10.4 billion acquisition of Amersham, a medical imaging powerhouse that is expected to bring another $3 billion in annual revenue to GE's health care unit. And the company is merging its NBC division with VivendiUniversal in another multibillion-dollar deal that's slated to close in May. Meanwhile, GE plans to shed Genworth -- its life and mortgage insurance business -- in a public offering set for the first half of this year. In the end, GE plans to emerge as a company that can post sustainable double-digit earnings growth beginning in 2005. Goldman Sachs analyst Deane Dray is optimistic. "The key point here is that the strategy/decision-making process underpinning GE's portfolio transformation is largely behind it now, and the primary task at hand is execution and integration," wrote Dray, who raised GE to outperform this week. "And of all the multi-industry companies, GE has the well-earned reputation for disciplined execution." Dray looks for "growth engines" and "cash generators" -- GE's two new business categories -- to hit overall targets next year.