General Electric (GE) Will Make Stronger Push into Margin-Friendly Service Segment
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Price: $374.94 --0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: +16.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: +16.0%
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Could General Electric (NYSE: GE) become more of a service company?
According to Reuters, the answer is yes. GE is expected to unveil a new road map for the company on Thursday, one which includes a stronger push into the services business.
Overall, the goal is to help hospitals, railroads, airlines, and other industries to operate more efficiently. In turn, GE hopes the higher-margin service segment will boost both its top and bottom lines.
Though economic turmoil over the last few years, revenue from GE's service unit continued to be much more stable than equipment sales.
Reuters says that GE's pitch will include suggestions on how little operational tweaks will lead to bigger savings. GE is currently developing new software systems which will help companies to analyze how equipment is running and will ultimately offer suggestions on how companies will be able to get more out of said equipment.
Ahead of the bell Wednesday, GE is indicated slightly lower.
According to Reuters, the answer is yes. GE is expected to unveil a new road map for the company on Thursday, one which includes a stronger push into the services business.
Overall, the goal is to help hospitals, railroads, airlines, and other industries to operate more efficiently. In turn, GE hopes the higher-margin service segment will boost both its top and bottom lines.
Though economic turmoil over the last few years, revenue from GE's service unit continued to be much more stable than equipment sales.
Reuters says that GE's pitch will include suggestions on how little operational tweaks will lead to bigger savings. GE is currently developing new software systems which will help companies to analyze how equipment is running and will ultimately offer suggestions on how companies will be able to get more out of said equipment.
Ahead of the bell Wednesday, GE is indicated slightly lower.
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