Earnings Preview: GE Reports Q4 Results Friday

| About: General Electric (GE)
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General Electric Company (NYSE:GE) is expected to report earnings for last fiscal quarter before the opening bell on January 20, 2012.

General Electric Company operates as a technology, service, and finance company worldwide. The company was founded in 1892 and is based in Fairfield, Connecticut. GE trades an average of 53.8 million shares per day.

52 Week High: $21.65
52 Week Low: $14.02
Book Value: $11.79
Float Short: 0.83%

Analysts are expecting an improvement of $0.07 in earnings per share compared to last quarter's results of $0.31. The reporting quarter's estimated mean earnings are $0.38 per share. Analyst estimates range between $0.36 and $0.39 per share.

The current trailing twelve months P/E ratio is 14.4. The forward P/E ratio is 12.22. GE generally trades in a small daily range so the ability to hedge with options is relatively limited. At the same time, if an investor does want to write covered calls the time before earnings is going to generally provide the richest premium. I remain slightly bullish with GE, but would look for a pullback to add shares.

GE is well-known for lightbulbs, but what may not be so well known is incandescent light bulbs are still fully available. The US has no supply issues due to the defacto ban on the 100 watt put in place to take effect this year was defanged at the 11th hour. Congress and the president removed all funding for enforcement of the ban.

For the same fiscal period year-over-year, revenue has declined to $150.21 billion for 2010 vs. $155.28 billion for 2009. The bottom line has rising earnings year-over-year of $11.64 billion for 2010 vs. $11.03 billion for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $30.19 billion for 2010 vs. $28.30 billion for 2009.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for GE

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 34.94 B $ 35.37 B $ 429.50 M 1.23%
Jun-11 $ 34.70 B $ 35.62 B $ 927.90 M 2.67%
Mar-11 $ 34.64 B $ 38.45 B $ 3.81 B 10.98%
Dec-10 $ 39.90 B $ 41.38 B $ 1.47 B 3.69%
Sep-10 $ 37.54 B $ 35.89 B $ -1656.20 M -4.41%

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results GE Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for GE:

paid2trade.com short interest tool. The total short interest number of shares for GE

The number of days to cover short interest based on average daily trading volume for GE:

paid2trade.com number of days to cover short interest based on average daily trading volume for GE

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.