Can Aviation And Renewable Energy Aid GE In Q3 Earnings?
Zacks Investment Research | Oct 27, 2019 11:14PM ET
General Electric Company (NYSE:GE) is scheduled to report third-quarter 2019 results on Oct 30, 2019, before the market opens.
The GE Aviation segment manufactures commercial and military jet engines and components, and provides aftermarket services. It accounted for roughly 29.1% of Industrial revenues in the second quarter of 2019. Alternatively, the Renewable Energy segment — comprising wind and hydropower businesses — accounted for roughly 13.4% of Industrial revenues in the second quarter.
Apart from Power and Renewable Energy segments, the Industrial segment’s results include that of three other segments.
Factors Influencing Segments & Estimates
Over the past few quarters, the Aviation segment has supported top-line growth for General Electric. This trend is expected to get reflected in third-quarter performance. Increasing popularity of LEAP engines, strengthening services and military businesses, and rise in passenger air travel globally are anticipated to have benefited the segment in the third quarter.
For the third quarter of 2019, the Zacks Consensus Estimate for Aviation’s revenues is pegged at $8,041 million, suggesting 2.1% rise from the previous quarter’s reported figure and 7.5% growth from the year-ago quarter’s number.
Growth in the onshore wind business, efforts to develop products and cost-reduction moves are expected to have strengthened revenues for the Renewable Energy segment in the third quarter of 2019.
For the third quarter of 2019, the Zacks Consensus Estimate for Renewable Energy’s revenues is pegged at $4,051 million, suggesting growth of 11.7% from the previous quarter’s reported figure and 41% rise from the year-ago quarter’s number.
Industrial’s Q3 Expectations
The Zacks Consensus Estimate for Industrial’s revenues in the to-be-reported quarter is currently pegged at $24,107 million, suggesting a 10.9% decline from the previous quarter and a 13.2% decrease from the year-ago quarter’s reported figure. Profits for the Industrial segment are likely to be $2,489 million, indicating 5.5% rise from the previous quarter’s reported figure and 7.1% growth from the year-ago quarter’s number. (Read more: Zacks Investment Research
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