Список проголосовавших за комментарий " <table class="BriefingDataTable" border="0" cellspacing="0" cellpadding="0"><tr> <td class="tickerColumn"> </td> <td class="articleColumn">General Electric Q4 Earnings Preview (31.18 -0.05)<p>General Electric (GE) is set to report Q4 results before the bell tomorrow (8:30am ET). <strong>Cap IQ Consensus estimates Q4 EPS of $0.46 (vs. $0.52 in 4Q16), w/revs of $33.67 bln ( +0.4% y/y)</strong>.</p><p><strong>Guidance</strong></p><ul><li>In a slide presentation from December 14th:<ul><li>Reaffirmed guidance for FY16, seeing EPS of $1.48-1.52 and seeing organic growth of +0-2%</li><li>Reaffirmed guidance for FY17, seeing EPS of $1.60-1.70</li><li>Said its positioned to hit $2 EPS in 2018 despite oil and gas headwinds</li></ul></li></ul><p>On the Q4 earnings call investors will be listening for additional color regarding the co's merger with Baker Hughes (<strong>BHI</strong>) that was announced on October 31st, updates on the co's 2017 plan to build a strong digital initiatives and plans regarding an invest in a GE Store, any new information regarding the co's accounting practices (the WSJ ran a story detailing how the SEC has been critical of GE's non GAAP accounting practices on 11/15, the SEC took no action), and the effect of a potential non-Bank SIFI designation for GE moving forward. Comments from the incoming Administration suggests Any potential new legislation would not allow the Financial Stability Oversight Council. Metlife (<strong>MET</strong>) won a federal court case to throw out its «too big to fail» label and this would benefit GE and other insurers.<br/> <br/> <strong>Peers</strong></p><ul><li>Currently GE has a P/E of 35.9x</li><li>Honeywell (<strong>HON</strong>) P/E of 18.5x</li><li>3M (<strong>MMM</strong>) P/E of 22.5x</li></ul><p><strong>Additional Highlights from December 14 Investor Presentation</strong></p><ul><li>Framing 2017 + 2018<ul><li>Most optimistic they have been about U.S. economy in many years… reform + general economic growth; in addition, a lot of their markets are quite good.</li><li>Oil market is tougher than they envisioned on 4/15… has put pressure on their business & some of our markets.</li></ul></li><li>2017 Outlook<ul><li>Build a strong Digital Industrial company</li><li>Invest in GE Store… a performance & competitive differentiator</li><li>Position to hit $2 EPS in 2018 despite oil & gas headwinds</li></ul></li></ul><p><strong>Highlights from Last Quarter</strong></p><ul><li>Reports Q3 earnings of $0.32 per share vs. the $0.30 consensus; total segment revenue rose 3.8% year/year to $30.02 bln; consolidated rev +4% to $29.27 bln; unclear which is comparable to $29.68 bln consensus.<ul><li>3Q'16 orders $26.9B, +16%; (6)% organic</li><li>Backlog strong at $319B</li><li>Alstom orders $5.2B with strength across the board</li><li>Services orders +1% organically</li><li>Strength in services across Renewables, Aviation & Healthcare</li><li>Backlog +6% ex. Alstom</li><li>Slow growth and volatile environment… Challenges continue in resource sector</li></ul></li><li>Co issues in-line guidance for FY16, narrows EPS to $1.48-1.52 from $1.45-1.55, excluding non-recurring items, vs. $1.49 consensus (at the time). <ul><li>Organic growth +0-2% from +2-4%, +4% ex-O&G; CFOA +$32 bln.</li></ul></li><li>Bridge to 2018: More challenging environment for Oil & Gas and related markets… still positive on long-term outlook + Sustained performance in rest of GE. </li></ul><p><strong>Options Activity</strong></p><ul><li>Based on COL options, the current implied volatility stands at ~ 23%, which is 146% higher than historical volatility (over the past 30 days). Based on the COL Jan $90 straddle, the options market is currently pricing in a move of ~2% in either direction by January expiration (Friday).</li></ul><p><strong>Analyst Commentary</strong></p><ul><li>Upgraded to Outperform from Mkt Perform at Bernstein (December 16).</li><li>Cowen notes the GE/BHI partnership is a strategic plus, as it bolsters GE's competitive mettle vs. SLB, at an opportune time in the O&G cycle. However, the transaction is only marginally accretive (2%) to GE's C18E EPS despite a sizable use of GE's M&A firepower ($7.4B of $20B utilized); Market Perform. (October 31).</li><li>Standpoint Research maintains Sell, $26 tgt (October 21).</li></ul></td> </tr></table>"