GE Giant GE will release its third quarter results on October 21, 2016.
The company is currently in the transition phase and plans to refocus its core industrial business.
According to its new plan, the company’s goal is that the profit portfolio of industrial business is more than 90%, and the profitability of financial services is less than 10%.
According to this plan, GE stripped substantially of its financial assets and has now completed 80% of the divestiture program, according to the plan, according to which the company has fully divested its financial assets and has now completed 80% of the divestiture program. 11219988712
Based on this plan,
As of October 3, 2016, GE Financial signed the amount of assets sold agreement has reached $ 193 billion.
However, the Company will retain the financing business directly related to GE’s business.
However, GE’s portfolio revised the selection of the macro environment in the harsh times, the energy market downturn in the company’s oil and gas business caused damage.
Many analysts expect the oil and gas sector will continue to affect GE’s performance over the next few quarters.
In addition, Alstom power and grid business and GE energy integration also faces multiple challenges.
These factors in the capital market is also undoubtedly, compared to October 3, 2016 General Electric and its peers stock price performance:
Why talk about GE’s share price? Because we can look at Wall Street analysts on GE revenue, profits and earnings
It is estimated that GE’s recent acquisitions, reorganizations and future developments will focus on the recommendations of GE and its peers.
Why GE’s 3Q 16 revenues are expected to increase?
analyst estimates that the total revenue of General Electric third quarter 2016 was $ 30 billion, an increase of 7.3%.
While the energy market has hurt GE’s overall revenue, a good business environment will increase revenue in terms of electricity, aviation and health care.
Analysts expect revenue for the next four quarters to reach $ 123.6 billion.
In contrast, GE’s total revenue for the past four quarters was $ 122.8 billion.
In the 2016 fiscal year and 2017 fiscal year, analysts expect GE to earn $ 125.8 billion and $ 124.6 billion, respectively.
On the other hand, with the GE financial divestiture, GE has also been away from the electrical and lighting business…. | | | | | | | | | | | | | |||||||||||||||||||||||||| 1
In September 2016, GE Lighting announced plans to withdraw from the Asian and Latin American markets.
As part of its business portfolio reorganization, GE recently decided to stay away from traditional lighting technology and focus exclusively on LEDs.
GE future earnings target
GE is expected to be 2% to 4% in the 2016 fiscal year organic growth rate.
First half revenue fell 1% year on year, GE management hopes to grow 5% in the second half, the whole 2016 fiscal year growth of 2%.
GE Energy is expected to ship 65% of heavy-duty gas turbines in the next three to four months, and GE Capital has become the largest business unit in the GE industry through the acquisition of Alstom’s power assets, accounting for 20% of total revenue ~
GE Airlines is the second largest subsidiary of GE Group, accounting for 18% -20% of total revenue, followed by GE Healthcare, accounting for 16%.
In addition, GE has been actively seeking to build industrial Internet.
With the industrial software platform Predix, GE’s digital revenue is expected to grow by 25% to 30% by 2020 to $ 15 billion.
In order to meet the needs of industrial customers, GE has so far in the Predix platform to invest $ 1 billion.
The company estimates that by 2020 the potential of the industrial Internet market could reach $ 225 billion.
GE aviation sector in the third quarter 2016 results will be how?
General Electric (GE) aviation sector is the second largest contributor to the company’s total revenue.
The plate in the first half of the operating margin of 22.5%, GE Industrial Group is the largest of the eight business segments.
From the civil aviation market, according to the International Air Transport Association (IATA) data, the global air passenger capacity in 2016 is expected to remain at 80%, while freight volume will grow by 2.1% year on year, compared with 3% in 2015, according to the International Air Transport Association (IATA)
; 2016 passenger volume will increase to 36.8 million, compared with 34.8 million in 2015; 2016 aircraft fuel average cost is expected to 55 US dollars per barrel, while 2015 $ 67 per barrel; 2016 airline’s overall profit of 390
Billion dollars, compared with $ 35 billion in 2015.
For the military, General Electric expects the US defense budget to remain unchanged in 2017, at $ 58 billion.
The company’s intelligence shows that international defense spending in the first half of 2016 increased by 4% in the first half of the aircraft engine spare parts growth rate of nearly 6%, compared with 9% in 2015.
The company expects the aerospace engine to grow by 15% to 31,000 units in 27,000 units by 2015.
So far, GE airline’s revenue is expected in 2016 as follows:
GE engine backlog Airline orders totaled $ 156 billion, of which $ 46 billion three years ago, belongs to the order.
In addition, due to the expected delivery of 44,000 commercial engines by 2020, after-sales service will also usher in explosive growth.
The aviation sector is expected to deliver about 110 engines in 2016 and 1,900 units by 2019.
GE’s operating margin How?
analysts expect, GE in 2016 third quarter operating margin would be 16%, even though it meant slightly, but analysts expect the company’s operating margin will
The next four quarters of growth.
In the 2016 fiscal year and 2017 fiscal year, they expected operating margin of 15.7% and 15.5% respectively.
Remove the Alstom power and grid business, GE is expected in 2016 will be a slight core profit expansion.
The company’s aviation, transportation and healthcare business will account for more than half of its operating profit.
Because of the strong ability to acquire orders in the aerospace, power and healthcare businesses, it is also likely that future margins will be greater.
However, the commercial outlook for oil, gas and transportation may depress profits for the next few quarters. However, the outlook for oil, gas and transportation is likely to depress profits for the next few quarters. 11219988712
Through the integration of Alstom, GE is expected to reach $ 1.1 billion in synergies in 2016.
However, Alstom’s lower margins may affect GE’s overall profit margin in the near future.
In addition to Alstom, GE’s industrial profit margin for the second quarter of 2016 was 15.6%.
The profitability of the Alstom power business was 4.4% in the second quarter of 2016.
According to GE data, oil and gas operating income in 2016 is also expected to fall by 30%, according to GE Data. 11219988712
GE energy sector accounts for a quarter of industrial profits.
With the increase in revenue from gas turbines provided by Alstom, GE’s revenue should hit impressive growth in revenue over the next year.