Bulletin
Investor Alert

New York Markets Close in:

Topics

Aerospace

3:41 a.m. Nov. 9, 2021 - By Ciara Linnane
S&P Global Ratings puts GE ratings on review for possible downgrade after plan to split into three companiesS&P Global Ratings placed General Electric Co.'s ratings on review for a potential downgrade on Tuesday, after the company announced a plan to separate into three independent companies over time and to complete the separation of is health care business in early 2023. "Upon the separation of GE Healthcare, we would view GE as less diversified," the rating agency said in a statement. "In the past year, the health care segment has been more resilient and contributed relatively stable profitability and cash flow given the impact of the COVID-19 pandemic on its aviation segment and while power remains in turnaround mode. The separation of the health care segment would be a credit negative in our view." Having said that, S&P said the remaining aviation, power and renewable businesses have strong market positions and large scale operations, which are benefits. The agency is expecting a gradual recovery in aviation from pandemic lows and to see "more robust margin recovery" in 2022, followed by a return to close to pre-pandemic margins in 2023. S&P will provide more details on its move once GE has disclosed more information on the plan, including potential cash proceeds from the spinoff and its impact on GE's credit metrics. GE shares were up 5% premarket and have gained 25% in the year to date, matching the S&P 500's gain .
1:42 a.m. Nov. 9, 2021 - By Tomi Kilgore
GE stock soars after plan to split into 3 publicly traded companiesShares of General Electric Co. soared 15.5% in premarket trading Tuesday toward the highest levels seen since January 2018, after the industrial conglomerate announced plans to split up into three publicly traded companies. The company said it plans to spin off its GE Healthcare business in early 2023, with GE retaining a 19.9% stake. GE said it will also combine its GE Renewable Energy, GE Power and GE Digital businesses then spin that combination off in early 2024. After the splits, GE said it will remain an Aviation focused company. Current GE Chief Executive Larry Culp will be non-executive chairman of GE Healthcare after it is spun off, and will service of CEO of GE until the second spinoff, at which time he will lead the GE aviation-focused company. "By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees," Culp said. GE's stock has gained 25.5% year to date through Monday, while the S&P 500 has advanced 25.2%.
1:48 a.m. Nov. 1, 2021 - By Tomi Kilgore
GE CEO Culp says completion of GECAS, AerCap deal is a 'debt story today'Shares of General Electric Co. gained 0.4% in premarket trading Monday, after the industrial conglomerate said that business with AerCap Holdings N.V. has been completed. GE said it received a total of more than $30 billion in proceeds after the deal closed, including $23 billion in net cash and 111.5 million shares, or 46% ownership of the combined company, which has a market value of about $6.6 billion. "This is a debt story today," said GE Chief Executive Larry Culp. "The cash proceeds put us in a position to have reduced our debt by approximately $75 billion since the end of 2018, and we gain a meaningful stake in AerCap that we will monetize as the aviation industry recovers." GE's stock has rallied 21.4% year to date through Friday, while the S&P 500 has climbed 22.6%.
1:36 a.m. Oct. 26, 2021 - By Tomi Kilgore
GE stock gains after profit and FCF beats, while revenue surprisingly fellShares of General Electric Co. rose 1.0% in premarket trading Tuesday, after the industrial conglomerate reported third-quarter profit and industrial free cash flow that beat expectations, but revenue that surprisingly fell, while providing an upbeat full-year earnings outlook. On a net per-share basis, GE swung to earnings of $1.08 from a loss of $1.09 in the year-ago period. Excluding nonrecurring items, adjusted EPS rose to 57 cents, beating the FactSet consensus of 43 cents. Revenue slipped 0.5% to $18.43 billion from $18.53 billion, while the FactSet consensus was for a rise to $19.29 billion. Industrial free cash flow was $1.7 billion, while the estimates of two analysts surveyed by FactSet ranged from $670.0 million to $1.07 billion, with an average of $870.5 million. For 2021, the company narrowed its guidance range to $3.75 billion to $4.75 billion from $3.5 billion to $5.0 billion. Among GE's businesses, revenue for Aviation rose 10% to $5.40 billion, but missed the FactSet consensus of $5.59 billion; Healthcare revenue fell 5% to $4.34 billion, below expectations of $4.60 billion; Power revenue was little changed at $4.03 billion, above forecasts of $3.82 billion; and Renewable Energy revenue declined 7% to $4.21 billion, missing expectations of $4.66 billion. GE raised its 2021 adjusted EPS guidance range to $1.80 to $2.10 from $1.20 to $2.00. GE's stock has gained 1.9% over the past three months, while the S&P 500 has tacked on 3.3%. (This updates an earlier item that had incorrectly reported Power revenue.)
1:53 a.m. Oct. 22, 2021 - By Tomi Kilgore
Intel, Honeywell stock drops after earnings would cut Dow's price by about 70 pointsShares of Intel Corp. tumbled 10.3% in premarket trading Friday, making it by far the biggest loser among Dow Jones Industrial Average components, in the wake of . Since Intel's closed Thursday at $56.00 as the 25th-lowest price Dow component, and the Dow is a price-weighted index, the impact on the Dow's price is more muted than higher priced stocks. Intel's stock's implied premarket price decline would shave about 40 points off the Dow's price, while Dow futures gained 30 points, or 0.1%. Honeywell's stock is the next biggest Dow loser, falling 2.1% after reporting . But with the stock closing Thursday at $224.52, the implied premarket price decline would cut about 30 points off the Dow's price.
1:45 a.m. Oct. 22, 2021 - By Tomi Kilgore
Honeywell's stock drops after profit tops expectations but revenue misses amid 'tough' supply chain environmentShares of Honeywell International Inc. slumped 3.4% in premarket trading Friday, after the aerospace and building materials company reported third-quarter profit that topped expectations but revenue that came up short, citing "tough challenges" in the supply chain. Net income rose to $1.27 billion, or $1.80 a share, from $758 million, or $1.07 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose 29% to $2.02, above the FactSet consensus of $1.99. Sales grew 8.7% to $8.47 billion, below the FactSet consensus of $8.66 billion. Among the company's business segments, all saw sales rise from a year ago, but only performance materials and technologies topped expectations, while aerospace, building technologies and safety and productivity solutions were a bit shy. For 2021, the company raised its guidance range for adjusted EPS to $8.00 to $8.10 from $7.95 to $8.10, but cut its revenue guidance to $34.2 billion to $34.6 billion from $34.6 billion to $35.2 billion. The stock has declined 3.5% over the past three months through Thursday, while the S&P 500 has gained 4.2%.
3:26 a.m. Oct. 6, 2021 - By Tomi Kilgore
Dow's selloff is unanimous, led by Caterpillar, BoeingAll 30 components of the Dow Jones Industrial Average are losing ground in Wednesday's premarket session, as shed 282 points, or 0.8%. The Dow's biggest losers are shares of Caterpillar Inc. , down 1.5%, and Boeing Co. , down 1.4%, and . , shedding 1.4%. The most active Dow stocks ahead of the open are Coca-Cola Co.'s , which fell 0.5%, and Apple Inc.'s , which declined 1.2%. The best performer was Johnson & Johnson's stock , which slipped 0.1%.
9:21 a.m. Aug. 13, 2021 - By Tomi Kilgore
Bridgewater adds new stakes in chip makers and boosts GE bet, while selling off Boeing, Delta, UPS holdingsBridgewater Associates LP has disclosed that the value of its equity holdings as of the end of the second quarter increased by 37.5% from the end of the first quarter, while the S&P 500 increased just 8.2% over the same time. The hedge fund manager's largest company holding in terms of value as of June 30 was Walmart Inc. , with the fund increasing its ownership by 51% in three months to $736.5 million, while its holding of rival discount retailer Target Inc. grew 91% to $216.3 million. Among other changes the fund made to its holdings during the second quarter, it reduced its holding in Tesla Inc. by 31% to $17.15 million; it add new investments in chipmakers Nvidia Corp. worth $16.9 million, Advanced Micro Devices Inc. worth $10.4 million, Intel Corp. worth $2.0 million and Micron Technology Inc. worth $18.4 million; it sold off its stakes in Delta Air Lines Inc. and Southwest Airlines Co. , while adding a new $1.6 million stake in United Airlines Holdings Inc. ; it sold off its stakes in United Parcel Service Inc. and Boeing Co. , but added new stakes in Caterpillar Inc. ($18.8 million) and Deere & Co. ($26.6 million); added a $1.6 million bet on Carnival Corp. ; and boosted its stake in General Electric Co. by nearly 29 times to $18.6 million from about $650,000.
2:51 a.m. Aug. 5, 2021 - By Tomi Kilgore
Parker Hannifin tops profit and sales expectations, but provides downbeat outlook; stock fallsParker Hannifin Corp. reported Thursday fiscal fourth-quarter record profit and revenue that beat Wall Street's expectations, as international industrial sales beat forecasts to offset a miss in North America sales. The motion control and technologies and systems company also provided a fiscal 2022 earnings outlook that was a little below expectations. The stock fell 0.8% in premarket trading. The company swung to net income of $504.8 million, or $3.84 a share, from $289.5 million, or $2.23 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $4.38, above the FactSet consensus of $4.32. Sales grew 25.3% to $3.96 billion, topping the FactSet consensus $3.93 billion. North America industrial sales rose 27% to $1.82 billion, below the FactSet consensus of $1.88 billion, while international industrial sales grew 37% to $1.51 billion to beat expectations of $1.43 billion. Aerospace sales increased 1% to $630.0 million, above expectations of $627.0 million. For fiscal 2022, the company expects adjusted EPS of $16.20 to $17.00, compared with the FactSet consensus of $17.19. The stock has lost 3.9% over the past three months through Wednesday, while the S&P 500 has gained 5.6%.
2:17 a.m. July 28, 2021 - By Tomi Kilgore
General Dynamics beats profit expectations but misses on revenue, as aerospace weakness weighsGeneral Dynamics Corp. reported Wednesday a second-quarter profit that rose above expectations but revenue that surprisingly slipped, as weakness in the aerospace business weighed. Net income rose to $737 million, or $2.61 a share, from $625 million, or $2.18 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.54. Revenue slipped 0.5% to $9.22 billion from $9.26 billion, while the FactSet consensus was for an increase to $9.31 billion. Within the aerospace and defense contractor's business segments, Aerospace revenue fell 17.8% to $1.62 billion to miss the FactSet consensus of $1.75 billion and Technologies revenue rose 3.2% to $3.16 billion to miss expectations of $3.20 billion, while Marine Systems revenue increased 2.6% to $2.54 billion to top expectations of $2.53 billion and Combat Systems revenue grew 8.3% to $1.90 billion to beat forecasts of $1.76 billion. The company said overall demand remained strong, with a consolidated book-to-bill ratio of 1-to-1. The stock, which was little changed in premarket trading, has rallied 30.4% year to date while the S&P 500 has gained 17.2%.
2:13 a.m. July 27, 2021 - By Tomi Kilgore
Raytheon stock rallies after profit, revenue and FCF beats and raised outlookShares of Raytheon Technologies Corp. rallied 1.4% in premarket trading Tuesday, after the aerospace and defense company reported second-quarter profit, revenue and free cash flow that were above expectations and raised the full-year outlook, as commercial aerospace continued to recover and amid strength in its defense businesses. The company swung to net income of $1.03 billion, or 68 cents a share, from a loss of $3.84 billion, or $2.55 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $1.03, above the FactSet consensus of 93 cents. Revenue rose 13% to $15.88 billion to top the FactSet consensus of $15.83, as revenue beats by the Pratt & Whitney, intelligence and space and missiles and defense businesses helped offset a Collins aerospace miss. Free cash flow was $966 million, well above the FactSet consensus of $775.8 million. The company raised its 2021 outlook for EPS to $3.85 to $4.00 from $3.50 to $3.70 and for revenue to $64.4 billion to $65.4 billion from $63.9 billion to $65.4 billion. The stock has advanced 20.2% year to date through Monday, while the S&P 500 has gained 17.7%.
1:41 a.m. July 27, 2021 - By Tomi Kilgore
GE stock surges after profit and revenue beats, a surprise swing to positive free cash flowShares of General Electric Co. shot up 4.0% in premarket trading Tuesday, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow. On a net basis, the loss per shares narrowed to 14 cents from 26 cents, while excluding nonrecurring items, GE swung to adjusted earnings per share of 5 cents from a loss of 14 cents to beat the FactSet EPS consensus of 3 cents. Revenue rose 9% to $18.28 billion, above the FactSet consensus of $18.14 billion. Industrial free cash flow was about positive $400 million, compared with the FactSet consensus of negative $338.3 million, and the company raised the 2021 FCF guidance range to $3.5 billion to $5.0 billion from $2.5 billion to $4.5 billion. Among GE's business segments, revenue for Aviation rose 10% to $4.84 billion, but was below the FactSet consensus of $5.16 billion; Healthcare revenue grew 14% to $4.85 billion, well above expectations of $4.30 billion; Power revenue rose 3% to $4.30 billion to top versus expectations of $4.09 billion and Renewable Energy revenue jumped 16% to $4.05 billion to exceed expectations of $3.87 billion. "Momentum is building across our businesses, driven by Healthcare and services overall, with Aviation showing early signs of recovery," said Chief Executive Lawrence Culp. GE's stock has run up 19.6% year to date through Monday, while the SPDR Industrial Select Sector ETF has gained 17.0% and the S&P 500 has advanced 17.7%.
1:45 a.m. July 23, 2021 - By Tomi Kilgore
Honeywell stock gains toward a record after profit and sales beats, raised full-year outlookShares of Honeywell International Inc. gained 0.1% toward record territory in premarket trading Friday, after the aerospace and industrials company reported second-quarter profit and sales that beat expectations and raised the full-year outlook, citing a turnaround in several end markets hit hardest by the pandemic. Net income rose to $1.45 billion, or $2.04 a share, from $1.10 billion, or $1.53 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.02 beat the FactSet consensus of $1.94. Sales grew 17.8% to $8.81 billion, above the FactSet consensus of $8.64 billion. All business segments saw growth, while slight misses in aerospace and safety and productivity solutions sales were offset by beats in building technologies and performance materials and technologies. For 2021, the company raised its guidance ranges for adjusted EPS to $7.95 to $8.10 from $7.75 to $8.00 and for sales to $34.6 billion to $35.2 billion from $34.0 billion to $34.8 billion. "We are especially pleased to see a turnaround in several of our key end markets that were hardest hit by the pandemic, with commercial aerospace aftermarket and the UOP business returning to growth in the quarter," said Chief Executive Darius Adamczyk. The stock, which was on track to open above the June 1 record close of $232.95, has gained 9.4% year to date through Thursday while the Dow Jones Industrial Average has advanced 13.8%.
2:27 a.m. July 6, 2021 - By Tomi Kilgore
Huntington Ingalls to pay $1.65 billion in cash to buy Alion Science and Technology from Veritas CapitalMilitary ship builder Huntington Ingalls Industries Inc. announced Tuesday an agreement to buy Alion Science and Technology, a provider of services for the defense marketplace, for $1.65 billion in cash from Veritas Capital. Huntington Ingalls expects the deal, which is estimated to close in the second half of 2021, to be "significantly cash flow accretive" in fiscal 2022 and add to net earnings per share in 2023. "Today's announcement, coupled with our previous investments in leading edge technologies, such as cybersecurity and autonomous systems, reflects our commitment to stay on the cutting edge of critical, high-growth national security solutions and generate significant long-term value for our shareholders," said Huntington Ingalls Chief Executive Mike Petters. Shares of Huntington Ingalls, which had a market capitalization of $8.53 billion as of Friday's close, were still inactive in premarket trading. They have rallied 24.3% year to date, while the S&P 500 has gained 15.9%.
8:46 a.m. June 4, 2021 - By Tomi Kilgore
GE CEO Culp sees Q2 aviation shop visits in line with Q1, but sees a 'step down' in marginsShares of General Electric Co. shed 1.0% in afternoon trading Friday, as Chief Executive Larry Culp spoke at the Bernstein Strategic Decisions Conference. The stock has now slipped 2.8% since closing at a three-year high of $14.35 on May 27. Regarding the aviation business, Culp said, according to a FactSet transcript, that the industrial conglomerate is positioning to be "ready for the snapback" in air travel that is expected, as vaccine rollouts lead to diminished lockdown measures. Meanwhile, Culp said he expects shop visits "to more or less be in line" with the sequential first quarter, but sees a "step down" in margins as GE works through some contract margin reviews. However, Culp said there is no change to the full-year outlook, "that's really predicated on the second-half recovery," which he thinks he sees "taking root." GE's stock has run up 29.1% year to date, while the SPDR Industrial Select Sector ETF has climbed 18.8% and the S&P 500 has gained 12.5%.
4:11 a.m. April 30, 2021 - By Tomi Kilgore
Honeywell to transfer stock listing to NasdaqHoneywell International Inc. said Friday that it will transfer the listing of its common stock to the Nasdaq Stock Market from the New York Stock Exchange. The aerospace, control technologies and performance materials company said its stock will start trading on the Nasdaq on May 11, under the same "HON" ticker symbol. "Honeywell is the world's premier software-industrial company, shaping the future of technology and sustainability," said Chief Executive Darius Adamczyk. "Nasdaq's long tradition of listing category-defining technology companies aligns well with Honeywell's cutting-edge technology and sustainability portfolio." After the transfer, Honeywell stock will become the seventh Dow Jones Industrial Average component listed on the Nasdaq. Honeywell shares, which were little changed in premarket trading, has rallied 57.8% over the past 12 months, while the Nasdaq Composite has advanced 58.4% and the Dow has climbed 39.9%.
1:43 a.m. April 27, 2021 - By Tomi Kilgore
GE's stock turns lower after profit and FCF beats, but revenue fell shyShares of General Electric Co. sank 2.3% in premarket trading Tuesday, reversing an earlier gain of as much as 1.3%, after the industrial conglomerate swung to a first-quarter loss, but reported adjusted profit that topped expectations while revenue fell shy. The net loss for the quarter was $2.87 billion, or 33 cents a share, after net income of $6.16 billion, or 70 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 3 cents, beating the FactSet consensus of a penny per share. Total revenue fell 12% to $17.12 billion, below the FactSet consensus of $17.59 billion, as its Power, Renewable Energy and Aviation business segments came up short of expectations while Healthcare beat forecasts. Industrial free cash flow (FCF) came in at negative $800 million, while the average estimate of the two analysts who provided estimates to FactSet was $1.21 billion. "We are shifting more toward offense and capturing opportunities in the energy transition, precision health, and future of flight," said Chief Executive Larry Culp. "I am confident we are well positioned to drive profitable growth, achieving high single digit free cash flow margins over time and creating long-term value for shareholders." For 2021, GE affirmed its guidance ranges for adjusted EPS of 15 cents to 25 cents and for FCF $2.5 billion to $4.5 billion. The stock has run up 19.2% over the past three months through Monday, while the SPDR Industrial Select Sector ETF has advanced 18.6% and the S&P 500 has gained 11.7%.
2:12 a.m. April 23, 2021 - By Tomi Kilgore
Honeywell tops profit, sales expectations, as aerospace's sales miss offset by other segment beatsHoneywell International Inc. reported Friday first-quarter profit and sales that topped expectations, as a sales miss by the industrial conglomerate's aerospace business was offset by beats in all of the other business segments. The stock slumped 1.0% in premarket trading. Net income fell to $1.45 billion, or $2.03 a share, from $1.61 billion, or $2.21 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came in at $1.92, above the FactSet consensus of $1.80. Sales were little changed at $8.45 compared with $8.46 a year ago, but beat the FactSet consensus of $8.08 billion. Aerospace sales fell 22% to $2.63 billion, missing the FactSet consensus of $2.73 billion; performance materials sales slipped 2% to $2.35 billion but beat expectations of $2.28 billion; safety and productivity sales jumped 49% to $2.12 billion, above expectations of $1.79 billion; and building technologies sales grew 6% to $1.36 billion to top forecasts of $1.29 billion. The company raised its 2021 outlook for adjusted EPS to $7.75 to $8.00 from $7.60 to $8.00 and for sales to $34.0 billion to $34.8 billion from $33.4 billion to $34.4 billion. The stock has tacked on 7.8% year to date through Thursday, while the S&P 500 has gained 10.1%.
3:47 a.m. April 9, 2021 - By Tomi Kilgore
Honeywell's stock jumps toward a record after Deutsche Bank analyst says its the right time to buyShares of Honeywell International Inc. rose 2.3% toward a record high in premarket trading Friday, after Deutsche Bank analyst Nicole DeBlase turned bullish, saying the aerospace and automotive products company has "the right exposures at the right time." DeBlase raised her rating to buy from hold. She said that despite attractive end-market exposures, including leverage to a global economic reopening and "best-in-class" quality metrics, the stock has been the worst performer in the multi-industry and electrical engineering (MI/EE) group this year. "We take this opportunity to upgrade the stock, particularly as we now see 5% and 10% upside to consensus EPS forecasts for 2021 and 2022, among the most attractive in the MI/EE group," DeBlase wrote in a note to clients. Separately, J.P. Morgan analyst Stephen Tusa raised his stock price target to $250 from $200 while reiterating his overweight rating, citing the "best mega-cap setup in 20 years." The stock has gained 3.4% year to date through Thursday, while the SPDR Industrial Select Sector ETF has climbed 12.4% and the Dow Jones Industrial Average has rallied 9.5%.
6:34 a.m. March 10, 2021 - By Tomi Kilgore
GE credit rating on track to be downgraded at S&P Global after GECAS dealGeneral Electric Co.'s credit rating is headed toward a downgrade at S&P Global Ratings, which said to combine its aircraft leasing business, GE Capital Aviation Services (GECAS), with AerCap Holdings NV increase GE's debt leverage more than previously expected. S&P said it placed GE's BBB+ rating on CreditWatch with negative implications, and expects a one-notch downgrade to BBB, which is two notches above "junk" status, in about 10 to 12 months. The GECAS deal is valued at more than $30 billion for GE, with proceeds expected to be used to reduce debt. However, the remaining assets of GE Capital, which S&P Global had previously treated as a captive finance unit, will be incorporated into GE, and is expected to increase GE's debt leverage to about 6.0X. Meanwhile, fellow credit rating agency Moody's Investors Service affirmed GE's Baa1 credit rating, which is three notches above "junk," and affirmed the negative outlook, while Fitch Ratings affirmed the BBB rating -- 2 notches above "junk" -- and stable outlook. GE's stock, which fell 5.7% in midday trading, has gained 16.6% over the past three months, while the S&P 500 has advanced 6.4%.
1:55 a.m. March 10, 2021 - By Tomi Kilgore
GE proposes reverse stock split to boost price 8-foldGeneral Electric Co. said Wednesday that its board of directors will recommend shareholders approve a 1-for-8 reverse stock split, given the industrial conglomerate's "significant transformation" over the past several years. The split would effectively multiply GE's stock price by eight, while reducing the number of shares outstanding to a number "more typical of companies with comparable market capitalization," GE said. The company said the timing of the reverse split will take place, at the board's discretion, before the one-year anniversary of its 2021 annual shareholder meeting scheduled for May 4. Separately, GE said it expects 2021 adjusted earnings per share of 15 cents to 25 cents, compared with the FactSet consensus of 25 cents. Revenue is expected to grow in the low-single-digit percentage range, while the current FactSet revenue consensus of $80.4 billion implies 1.0% growth, while free cash flow is expected to be $2.5 billion to $4.5 billion to surround the FactSet consensus of $3.6 billion. GE to combine its aircraft leasing business, GECAS, with AerCap Holdings N.V. . GE's stock has rallied 58.2% over the past 12 months, while the S&P 500 has gained 34.5%.
1:40 a.m. March 10, 2021 - By Tomi Kilgore
GE confirms deal valued at $30 billion to combine GECAS with AerCap Shares of General Electric Co. rallied 3.2% toward a three-year high in premarket trading Wednesday after the industrial conglomerate confirmed an agreement to combine its GE Capital Aviation Services (GECAS) aircraft leasing business with AerCap Holdings N.V. , in a deal which creates more than $30 billion in value for GE shareholders. The Wall Street Journal had originally . AerCap shares were still inactive ahead of the open. As part of the deal, GE will receive $24 billion in cash and have 46% ownership of the combined company. GE plans to use the proceeds from the deal to reduce debt, which would bring its expected total debt reduction since the end of 2018 to more than $70 billion. The stock has run up 23.7% over the past three months while the S&P 500 has gained 5.7%.
8:52 a.m. March 9, 2021 - By Tomi Kilgore
GE stock rises as Morgan Stanley reiterates bullish call on potential GECAS deal, ahead of investor updateShares of General Electric Co. edged up 0.2% in afternoon trading Tuesday, but pared earlier gains of as much as 1.7% to a three-year intraday high, a day before the industrial conglomerate's investor update. On Monday, the stock had rallied 4.2% to the highest close since May 2018 after that GE was near a more-than $30 billion deal to combine its aircraft leading business (GECAS) with Ireland-based AerCap Holdings N.V. Analyst Joshua Pokrzywinski at Morgan Stanley reiterated his overweight rating and stock price target of $17, which is 20% above current levels, after the report of the potential Gecas deal, which he believes is a signal that "management could be pivoting to offense, including elimination GE Capital," including the insurance business. Pokrzywinski said the trimming of pension and long-term-care tail risk could allow GE to engage in more strategic transactions for GE Industrial. "We would view that as a meaningful start to GE moving from a 'special situation' to a cleanly valued company," Pokrzywinski wrote. GE's stock has climbed 31.5% year to date, while the SPDR Industrial Select Sector ETF has advanced 7.1% and the S&P 500 has gained 3.9%.
5:20 a.m. March 8, 2021 - By Tomi Kilgore
GE's stock jumps toward 3-year high after WSJ report that deal to sell GECAS to AerCap is nearShares of General Electric Co. surged 2.7% toward a three-year high in morning trading Monday, as the industrial conglomerate is close to a deal of more than $30 billion to combine its aircraft leasing business with Ireland-based AerCap Holdings N.V. , . GE's stock, which is headed for a fourth-straight gain, has run up 29.3% year to date, to add to a in the fourth quarter. The WSJ report, citing people familiar with the matter, said GE's aircraft leasing unit, known as GE Capital Aviation Services (Gecas), is the biggest remaining piece of GE Capital, which GE has been looking to divest for years as part of its plan to shore up its balance sheet. In 2020, GE Capital suffered a revenue decline of $1.5 billion, or 17%, from a year ago, primarily because of GECAS, which was hit hard by the COVID-19 pandemic and the effects of the Boeing Co. 737 MAX groundings. Over the past 12 months, GE shares have rallied 48.6%, while the SPDR Industrial Select Sector ETF has climbed 30.5% and the S&P 500 has advanced 29.9%.
1:13 a.m. Feb. 9, 2021 - By Tomi Kilgore
DuPont's stock set to rise after profit, sales beat expectationsShares of DuPont de Nemours Inc. were indicated up nearly 1% in premarket trading Tuesday, after the materials and chemicals company reported fourth-quarter profit and sales that beat Wall Street expectations, as strength in semiconductors and smartphone technologies, and further recovery in automotive markets, offset weakness in oil and gas, aerospace and certain industrial markets. Net income rose to $222 million, or 30 cents a share, from $176 million, or 24 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 95 cents topped the FactSet consensus of 85 cents. Sales grew 0.9% to $5.25 billion, above the FactSet consensus of $5.15 billion. Among DuPont's business segments, electronics and imaging, nutrition and biosciences and transportation and industrial sales rose and topped forecasts, while safety and construction sales fell below expectations. For the first quarter, the company expects adjusted EPS of 75 cents to 77 cents and sales of $3.75 billion to $3.85 billion, compared with the FactSet consensus for EPS of 67 cents and sales of $3.93 billion. The stock has rallied 22.9% over the past three months, while the S&P 500 has gained 10.3%.
2:11 a.m. Feb. 1, 2021 - By Tomi Kilgore
Eaton to pay $2.8 billion to buy refueling systems company Cobham Mission SystemsShares of Eaton Corp. edged up 0.3% in premarket trading Monday, after the power management company announced an agreement to buy air-to-air refueling systems company Cobham Mission Systems in a deal valued at $2.83 billion. The deal is expected to close in the second half of 2021. Eaton said the deal's value includes a tax benefit of $130 million. "Cobham Mission Systems' highly complementary products and strong position on growing defense platforms will enhance our fuel systems business and position our Aerospace business for future growth," said Heath Monesmith, president of industrial sector at Eaton. The stock rose 13.4% over the past three months through Friday, while the S&P 500 advanced 13.6%.
2:13 a.m. Jan. 29, 2021 - By Tomi Kilgore
Honeywell stock gains after profit and sales beats, in-line outlookShares of Honeywell International Inc. rose 0.6% in premarket trading Friday, after the aerospace and performance materials company reported fourth-quarter profit and sales that beat Wall Street forecasts, while providing an in-line full-year outlook. Net income fell to $1.36 billion, or $1.91 a share, from $1.56 billion, or $2.16 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share were flat at $2.07, but beat the FactSet consensus of $2.00. Sales fell 6.3% to $8.90 billion, above the FactSet consensus $8.40 billion. Within Honeywell's business segments, aerospace sales fell 18.7%, building technologies sales slipped 2.5% and performance materials and technologies sales declined 10.5%, while safety and productivity sales jumped 28.1%, with all segments exceeding expectations. For 2021, the company expects adjusted EPS of $7.60 to $8.00 and sales of $33.4 billion to $34.4 billion, surrounding the FactSet consensus for EPS of $7.84 and sales of $33.91 billion. The stock has climbed 23.2% over the past three months through Thursday, while the Dow Jones Industrial Average has gained 14.8%.
4:10 a.m. Jan. 26, 2021 - By Tomi Kilgore
Raytheon cut 1,500 more jobs at Collins, to reduce commercial aerospace headcount by 20%Raytheon Technologies Corp. chief financial officer Anthony O'Brien said on the aerospace and defense company's post-earnings conference call with analysts that it has exceeded synergy targets for the Collins acquisition and announced other cost cutting measures, including more job cuts. O'Brien said the company recently reduced its commercial head count at Collins by another 1,500, brining the total cuts to 16,500 jobs. He also said another 500 contractor roles were eliminated, bringing the total reductions to 4,500. That reduced the total commercial aerospace headcount by about 20%, he said, according to a FactSet transcript. Earlier, Raytheon reported .
1:40 a.m. Jan. 19, 2021 - By Ciara Linnane
Lumentum to acquire Coherent in cash and stock deal valued at $5.7 billion Lumentum Holdings Inc. said Monday it has agreed to acquire Coherent Inc. in a cash-and-stock deal valued at $5.7 billion. Under the terms of the deal, Lumentum will pay $100 in cash at 1.1851 shares of comment stock for each Coherent share. At closing. Coherent shares will own about 27% of the combined company. The deal "unites Coherent's leading photonics and lasers businesses, including in the Microelectronics, Precision Manufacturing, Instrumentation, and Aerospace & Defense markets, with Lumentum's leading Telecom, Datacom, and 3D Sensing photonics businesses, creating a diversified photonics technology company with significantly increased scale and market reach," the companies said in a joint statement. The deal is expected to boost earnings in the first year after closing and to generate more than $150 million in annual run-rate synergies. The deal is expected to close in the second half of 2021. Coherent shares soared 31.7% premarket, while Lumentum was down 1.7%.
1:59 a.m. Jan. 4, 2021 - By Ciara Linnane
Teledyne to acquire Flir Systems in cash-and-stock deal valued at about $8 billionTeledyne Technologies Inc. has agreed to acquire Flir Systems Inc. in a cash-and-stock deal valued at about $8 billion. Under the terms of the deal, Flir shareholders will receive $28 in cash and 0.0718 shares of Teledyne for each share owned, equal to a total purchase price of $56 per Flir share, based on Teledyne's 5-day volume weighted average price as of December 31. The deal offers a 40% premium over Flir's 30-day volume weighted average price as of December 31. Teledyne provides instrumentation, digital imaging products and software, aerospace and defense electronics and engineered systems. Flir makes sensors for defense and industrial uses. "At the core of both our companies is proprietary sensor technologies. Our business models are also similar: we each provide sensors, cameras and sensor systems to our customers. However, our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths," Teledyne Executive Chairman Robert Mehrabian said in a statement. Teledyne has secured a $4.5 billion 364-day credit commitment to fund the deal and refinance some of its debt. The deal is expected to close in mid 2021 and to immediately boost earnings excluding transaction costs. Flir shares soared 20.5% premarket on the news, but are down 17% in the last 12 months, while the S&P 500 has gained 16%. Teledyne shares were not yet active.
12:15 p.m. Dec. 7, 2020 - By Claudia Assis
Raytheon's board OKs $5 billion share buybackRaytheon Technologies Corp. said late Monday its board of directors has authorized a share buyback program of up to $5 billion, replacing the previous program approved in 2015. The share repurchases "may take place from time to time, subject to market conditions and at the company's discretion," Raytheon said. Shares of Raytheon rose nearly 2% in the extended session Monday after ending the regular trading day down 1.2%.
8:48 a.m. Dec. 7, 2020 - By Tomi Kilgore
GE's stock surges again toward a 4-day win streak, after a record monthly rally in NovemberShares of General Electric Co. climbed 1.5% in afternoon trading, putting them on track to close above the $11 mark for the first time in nine months. The stock has now gained 8.8% amid a four-day win streak, which was helped along by from Oppenheimer analyst Christopher Glynn on Friday. The recent gains follow a record-setting November for the industrial conglomerate's stock, in which it soared 37.2% to mark the biggest monthly gain FactSet has on record, which goes back to January 1972. In recent weeks, analysts have touted GE as both given its exposure to the aerospace sector and a company that given its GE Healthcare businesses. GE stock's November gain compares with the SPDR Industrial Select Sector ETF's 16.0% rally last month and the S&P 500's 10.8% gain.
Browse topics:
Link to MarketWatch's Slice.