Can GE sustain its Q3 earnings momentum?

**General Electric's (GE) ability to sustain its Q3 earnings momentum appears challenging** based on several factors: 1. **Recent Performance**: GE's Power & Water segment has seen a significant decline of 26% in sales. This drop, coupled with a 41% year-over-year decline in orders for the Aviation segment, suggests that GE is facing headwinds in its core business areas. 2. **Market Conditions**: The global decline in wind turbine demand, particularly in Europe, and the impact of reeling natural gas prices in the U.S. have affected GE's sales. These market conditions show volatility and uncertainty, which can be difficult to sustain. 3. **Strategic Changes**: While the appointment of a new CEO has been viewed positively, the effectiveness of this change in sustaining earnings momentum will take time to materialize. The company's recent management reshuffle may not immediately reverse the declining trends in its business units. 4. **Financial Estimates**: The estimated EPS for Q3 2023 is $0.56, which suggests that GE is expecting lower earnings compared to previous quarters. This could indicate a slowdown in momentum. In conclusion, while there is potential for a turnaround based on the new CEO's track record and strategic focus, the current market conditions and recent performance indicators suggest that sustaining Q3 earnings momentum will be a tough challenge for GE. The company needs to navigate through its current difficulties and capitalize on its strengths to achieve sustained growth.