Wall Street Happy With GE's (GE) Best Quarter In Years
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Price: $348.03 -2.3%
Rating Summary:
26 Buy, 8 Hold, 1 Sell
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Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
26 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Wall Street is applauding General Electric's (NYSE: GE) latest earnings reports, which was a clear cut 'beat' and arguably the strongest quarter from the conglomerate in years.
GE reported fourth-quarter earnings of 36 cents per share, 4 cents better than the analyst estimate of 32 cents per share. Revenue for the company grew for the first time in nine quarters to $41.4 billion, beating the market consensus of $39.9 billion.
Wall Street analysts were mostly giddy about the report, and shareholders are responding with the stock up 5.6 percent to $19.48 currently.
Here is a summary of what they said:
Oppenheimer's Christopher Glynn: "We note a noisy below the line quarter, but our overall take is quite positive, given robust equipment orders, solid revenue inflection at Healthcare and Transportation, and steady progress at GE Capital...The EPS beat was driven by slightly better revenues and margins. However, the margin beat was due mainly to NBCU (on-core) and GECS where Tech and Energy Infrastructure margins were below our expectations, but still solid (both up y-o-y)." Maintains Outperform
Deutsche Bank's Nigel Coe: "GE reported what is arguably their best quarter since 2007 with revenues, core EBIT and EPS comfortably exceeding our estimates, with upside fairly broad-based. Industrial CFOA was a mite weaker at $4.6bn vs. $5.2bn DBe but conversion still comfortably >100%. GE also bought back $0.9bn of stock this quarter." Maintains Hold, $20 price target.
Goldman Sachs' Terry Darling: "We view 4Q earnings as a clean and solid beat, reinforcing our positive view on GE based on (1) exposure to turning late cycle industrial end markets, with orders significantly stronger than expected, (2) improving credit trends at GECS, with loss provisions 20% below our estimate, and (3) improving capital allocation, with $1.2 bn of stock repurchase above our expectation. Maintains Buy
Nomura's Shannon O'Callaghan: GE reported 4Q10 EPS of $0.36, ahead of our $0.30 and $0.32 consensus, though industrial operating profit and GECS pre-tax preprovision earnings were approximately in line with our estimates...Revenues of $41.4B beat our $39.7B estimate with industrial revenues 3% better than we estimated at $29B versus our $28.2B estimate. Maintains Buy, $23 price target.
GE reported fourth-quarter earnings of 36 cents per share, 4 cents better than the analyst estimate of 32 cents per share. Revenue for the company grew for the first time in nine quarters to $41.4 billion, beating the market consensus of $39.9 billion.
Wall Street analysts were mostly giddy about the report, and shareholders are responding with the stock up 5.6 percent to $19.48 currently.
Here is a summary of what they said:
Oppenheimer's Christopher Glynn: "We note a noisy below the line quarter, but our overall take is quite positive, given robust equipment orders, solid revenue inflection at Healthcare and Transportation, and steady progress at GE Capital...The EPS beat was driven by slightly better revenues and margins. However, the margin beat was due mainly to NBCU (on-core) and GECS where Tech and Energy Infrastructure margins were below our expectations, but still solid (both up y-o-y)." Maintains Outperform
Deutsche Bank's Nigel Coe: "GE reported what is arguably their best quarter since 2007 with revenues, core EBIT and EPS comfortably exceeding our estimates, with upside fairly broad-based. Industrial CFOA was a mite weaker at $4.6bn vs. $5.2bn DBe but conversion still comfortably >100%. GE also bought back $0.9bn of stock this quarter." Maintains Hold, $20 price target.
Goldman Sachs' Terry Darling: "We view 4Q earnings as a clean and solid beat, reinforcing our positive view on GE based on (1) exposure to turning late cycle industrial end markets, with orders significantly stronger than expected, (2) improving credit trends at GECS, with loss provisions 20% below our estimate, and (3) improving capital allocation, with $1.2 bn of stock repurchase above our expectation. Maintains Buy
Nomura's Shannon O'Callaghan: GE reported 4Q10 EPS of $0.36, ahead of our $0.30 and $0.32 consensus, though industrial operating profit and GECS pre-tax preprovision earnings were approximately in line with our estimates...Revenues of $41.4B beat our $39.7B estimate with industrial revenues 3% better than we estimated at $29B versus our $28.2B estimate. Maintains Buy, $23 price target.
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