GE's Outlook Both Half Full & Half Empty (GE)

General Electric (NYSE: GE) is conducting its ANNUAL OUTLOOK MEETING today and there is really some fodder in here for bulls and bears alike.  The numbers and targets are impressive for a company of its size but the bears can argue that there are no "wow-factors" attached.

You can access the full presentation or you can see the most general financial data below:

• GE’s total 2007 EPS outlook is $21.19 to $2.21 after noting that it will deliver $0.67 to $0.69 EPS in Q4, but more importantly GE is showing its initial 2008 targets;
• Revenues approximately $195 Billion ($186+ Billion is estimate);
• EPS up roughly 10% roughly $2.42 (estimate is $2.49, although we already noted that was coming down);
• Cash of $23 to $26 Billion with dividend growth of 11% and buybacks north of $5 Billion;
• Roughly 17% margins and roughly 20% return on capital.
• Key goals for 2008 are to sustain growth in infrastructure, manage transition in financial services market, turnaround in healthcare, sustain an NBC/Universal turnaround, and to grow its industrial segment.

General Electric shares had been down over 1% after the FOMC market sell-off, but now shares are only down about 0.7% at $37.12. 

Based on all of the comments and forecasts, we’d expect analysts to be trimming the 2008 targets down in-line with Immelt’s guidance (as we telegraphed before) and we’d expect very few real ratings changes other than maybe a downward revision to price targets by $1.00 at most firm.

Jon C. Ogg
December 11, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.