GE Earnings Due Tuesday As Divorced GE/GEHC Stock Rally

General Electric (GE) plans on Tuesday to make its first quarterly earnings report since the spinoff of its health-care unit. GE stock has staged a strong rally into earnings.

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GE HealthCare Technologies (GEHC), the unit spun off from GE on Jan. 3, also reports early Tuesday. GEHC stock has spiked since its initial launch in December.

For General Electric, outlook will be key. Recession fears have grown since the conglomerate gave a strong full-year forecast in January. Investors will also want to hear more about GE Aerospace and GE Vernova (power), which are coming public in early 2024, to cap the big GE breakup.

GE Earnings

Estimates: Analysts polled by FactSet expect GE earnings to crumble 27% year over year, to 14 cents. Revenue is seen dropping 18% to $13.299 billion.

Estimates exclude GE HealthCare, which is now a stand-alone company.

Results: Check back Tuesday before the market open.

Outlook: Wall Street sees full-year EPS of $1.98, a 24% decrease vs. 2022.

In late January, GE gave an upbeat full-year forecast for revenue, earnings and cash flow. Its projection called for full-year revenue growth in the high single digits, adjusted EPS of $1.60 to $2 a share and free cash flow of $3.4 billion-$4.2 billion.

GE Stock

Shares of GE stock have rocketed 53% year to date. The stock cleared a handle buy point at 81.28 in late January.

GE Aerospace

General Electric is set to emerge as an aviation pure-play in early 2024. The storied conglomerate shed a series of businesses over the past several years, seeking a turnaround after a collapse in earnings and cash flow.

In aviation, General Electric supplies plane makers Boeing (BA) and Airbus (EADSY) with jet engines and aviation systems.

That includes supplying the Boeing 737 Max. Production of that bestselling jet is ramping up after a series of challenges. Additionally, commercial travel is recovering from the pandemic.

GE Aerospace also supplies the military. It expects the defense business to drive significant profit growth in 2023.

When the company reports, investors will look for any falloff in demand amid recession fears.

GEHC Earnings

Analysts are projecting earnings at 79 cents per share, down almost 22%, and an almost 7% revenue gain, to $4.63 billion. For the year, analysts are forecasting a 19.6% drop in earnings. Revenue is targeted at $19.2 billion, up 4.9% — below the low end of company guidance of 5% to 7% growth.

GEHC Stock

GEHC stock, meanwhile, is ripping to new highs. Shares are up 50% so far this year, and still advancing aggressively. Shares have not paused to form a proper base to allow investors an entry. But a three-week pause after its December launch may have been considered a brief IPO base.

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