Earnings Preview: General Electric

General Electric (GE) is expected to report Q4 earnings on Friday, January 21 before the market open with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 32c on revenue of $39.9B. The consensus range is 30c-35c for EPS, and $37.91B-$41.37B for revenue, according to First Call. General Electric beat Q3 EPS estimates, but narrowly missed on revenue. Investors will be looking for the company to outperform in Q4. Since Q3 earnings were released, the shares have soared approximately 15%, advancing from $16 to around $18.50. They are currently trading well above their 200-day moving average.

On the company’s Q3 conference call, CEO Jeff Immelt made a series of positive comments, noting that he expected the company to grow earnings in 2011 and 2012. On December 10, General Electric raised its dividend 17%, signaling strong growth ahead. At the company’s Annual Outlook Investor meeting on December 14, management said it expects solid operating earnings growth in 2011, with revenue up 0%-5%. Immelt noted that the company's current group of businesses was the best he's ever seen, and GE's cash level was very high, positioning the company well going forward. Since the stock has had a 15% upside move in the last seven weeks, investors will need exceptional numbers to justify further commitments.