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Manufacturing & engineering

GE's early 2023 success may limit the upside of a 2Q earnings beat next week

General Electric (NYSE:GE) is scheduled to report second-quarter earnings on July 25 before the opening bell, when investors will be hoping for a third-consecutive quarterly EPS beat.

The Street expects GE to deliver revenue of $15 billion and earnings of $0.46 per share, compared to $18.6 billion and a loss of $0.78 per share a year earlier.

However, the stock might not have much room to grow, even on a beat. Shares of GE have risen every month of 2023. On Thursday afternoon, GE stock is up 1.4% to $111.14, not far off its 52-week high of $112.15.

Investors may be beginning to price in GE’s plan to spin off its energy business as GE Vernova in early 2024. That would leave GE Aerospace, which produces jet engines, as a stand-alone business. Previous spinoff GE HealthCare Technologies began trading on the Nasdaq in January.

For now, GE management projects full-year 2023 earnings to more than double to $1.70-$2 per share, up from $0.77 in 2022.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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