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General Electric in 3Q16: How Has the Stock Performed So Far?

Samuel Prince - Author
By

Dec. 4 2020, Updated 10:52 a.m. ET

General Electric’s 3Q16 results

Industrial conglomerate General Electric (GE) will release its 3Q16 earnings on October 21, 2016. It is currently in a transformation phase, focusing on its core industrial business. Under its new plan, the company is aiming for an earnings mix of over 90% from the industrial business and less than 10% from financial services.

The parent company has completed 80% of the planned sales of GE Capital assets. Up until October 3, 2016, GE Capital’s signed asset sale agreements totaled $193.0 billion. However, the company will retain the financing businesses directly related to GE’s industrial businesses.

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Stock price performance

GE’s aggressive portfolio revision comes at a time when the current macro environment is weak. The continued depression in energy markets has taken its toll on the company’s oil and gas business. Many analysts expect the oil and gas segment to impact GE’s results over the next few quarters. Furthermore, the integration of Alstom’s (ALSMY) power and grid business with GE Power has its own challenges. Let’s look at the stock price performance of GE and its peers on October 3, 2016:

  • General Electric (GE) returned -3.5%
  • United Technologies (UTX) returned 7.2%
  • 3M (MMM) returned 19.2%
  • Illinois Tool Works (ITW) returned 31.6%
  • Honeywell International (HON) returned 13.8%
  • Parker Hannifin (PH) returned 29.0%
  • Koninklijke Philips (PHG) returned 17.4%

GE forms part of over 92 ETFs. The company makes up 11.0% of the Industrial Select Sector SPDR ETF (XLI). This ETF also has exposure to some of GE’s close competitors, including 3M and Honeywell International.

Why read this series?

In this series, we’ll look at Wall Street analysts’ estimates of GE’s revenues, margins, and earnings. We’ll take a quick look at GE’s recent acquisitions, restructuring, and future focus. To conclude the series, we’ll review analysts’ recommendations for GE and its peers.

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