General Electric: 56% increase in profits

Last Updated: 6. Februar 2024By

General Electric is a globally operating conglomerate with businesses in areas such as transportation, healthcare, consumer goods, renewable energy, and finance. The company offers a variety of products, including industrial automation, medical imaging, engines, electrical distribution, lighting, locomotives, and accessories for the railway and automotive industries, as well as jet engines for civilian and military aircraft.

Profit increases by 56% In the fourth quarter, the US company achieved a profit of $1.03 per share, compared to $0.66 in the previous year. Analysts had expected $0.90. Revenue for the quarter was $19.42 billion, compared to $16.83 billion in the previous year. Analysts had expected $17.67 billion.

Forecast for the first quarter slightly below expectations General Electric expects an adjusted earnings per share of $0.60 to $0.65 for the first quarter and high single-digit revenue growth. Analysts are expecting an adjusted earnings per share of $0.69.

Further growth through gas power plants „We expect gas power plants to remain strong with continued growth in services and low double-digit margins,“ said CEO Scott Strazik. General Electric’s revenue is estimated to reach $34 to $35 billion by 2024, and adjusted revenue for GE Aerospace is expected to grow at least in the low double-digit range.

Flawless upward trend, but stock is ambitiously valued Conclusion: There is nothing to complain about – GE is in a strong uptrend. But how much potential does the stock still offer? Analysts, for the most part, see more potential: 12 out of 19 analysts recommend buying and 7 recommend holding. Not a single analyst would sell their shares. The average analyst price target is $142.50, which we are not far from. The highest analyst price target is $165. The P/E ratio for 2024 is 30, making the US stock ambitiously valued.