Earnings Preview: General Electric

General Electric (GE) is expected to report Q3 earnings on Friday, October 15 before the market open with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 27c on revenue of $37.67B. The consensus range is 25c-31c for EPS, and $36.81B-$38.74B for revenue, according to First Call. General Electric beat Q2 EPS estimates, but narrowly missed on revenue. Investors will be looking for the company to outperform in Q3. Since Q2 earnings were released, the shares have soared approximately 20%, advancing from $14.50 to around $17.25. They are currently trading above their 200-day moving average of $16.50. On the company’s Q2 conference call, CEO Jeff Immelt made a series of positive comments, noting that he expected the company to grow earnings and dividends in 2011 and beyond.

Analyst Views

On July 23, General Electric raised its dividend 20% and extended its share repurchase program, signaling strong growth ahead. Recent sentiment on the street has been positive. Nomura and Citigroup both issued Buy ratings on the shares with price targets of $20 and $19, respectively. Since the stock has had a 20% upside move in the last six weeks, investors will need exceptional numbers to justify further commitments.