With General Electric’s financial unit restructuring and last week’s announcement of asset sales, first quarter earnings may be disappointing.
General Electric Co. (NYSE: GE) is expected to report first quarter earnings on Friday before the market opens. Market sentiment points at disappointing results from the company as a result of a variety of factors such as, the stronger U.S. dollar (USD) in the first quarter, declining oil prices as well as a big slowdown in manufacturing numbers.
Thomson Reuters shared consensus that estimates $0.30 in EPS (earnings per share) on revenue of $34.23 billion. GE posted, for the same period a year before, $0.33 EPS on $34.18 billion. If General Electric provides some guidance for the next quarter, it will match consensus estimates of $36.15 billion in revenue and $0.39 EPS.
It is no surprise that GE are looking to spend $50 billion for buy-backs. Dividends were set to not move through 2016 and only to go up after this time; however, the spinning out of Synchrony by General Electric and also considering that so many assets are being sold in order to reduce the company’s base and number of shares, the company could in reality, be considered a raise in dividends even though it’s not officially doing so.
Ahead of the earnings report, GE shares, on Thursday, saw a decline of 0.5 percent at $27.33. The consensus price target is $29.92 as well as $23.41 to $28.68 on a 52 week trading range.
It seems that options traders are not concerned about the coming earnings report from General Electric. Friday expiration prices for the nearest speculative Call and Put contracts average out to a 1 percent move in either an up or down direction as the expected share price move.
MT4 Chart: General Electric
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