GE Aerospace Exceeds Expectations with Strong Q4 Results

Evendale, Ohio-based GE Aerospace (GE) specializes in designing and manufacturing commercial and defense aircraft engines, integrated engine components, electric power systems, and mechanical aircraft systems. With a market capitalization of $222.1 billion, GE Aerospace operates through two main segments: Commercial Engines and Services, and Defense and Propulsion Technologies.

Classified as a “mega-cap stock,” GE Aerospace exceeds the $200 billion threshold, underscoring its significant presence and influence in the aerospace and defense sectors. The company employs nearly 52,000 individuals and has over 44,000 commercial and 26,000 military aircraft engines in service.

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Recently, GE Stock reached an all-time high of $212.19 on February 18 and is currently trading 2.5% below that peak. Over the past three months, GE’s stock has risen by 14.6%, significantly exceeding the S&P 500 Index’s ($SPX) decline of 74 basis points during the same period.

Looking at a longer timeline, GE showcases even more robust performance, with a 66.3% increase in stock price over the past year and a 20.4% rise over the past six months. This performance comfortably surpasses the S&P 500’s gains of 17.5% over the past year and 6.5% over the previous six months.

Additionally, GE’s stock has remained predominantly above its 200-day moving average throughout the past year, showing minor fluctuations. It has consistently stayed above its 50-day moving average since mid-January, further solidifying the bullish trend.

GE Aerospace Stock jumped 6.6% following the release of its Q4 results on January 23. The company reported a strong year-end performance, with quarterly revenues increasing by 14.3% year-over-year to $10.8 billion. Adjusted revenues rose by 15.6% year-over-year to $9.9 billion, surpassing analysts’ expectations by around 4%. The firm also achieved significant improvement in profitability, with non-GAAP operating margins expanding by 450 basis points to 20.1%, leading to a remarkable 48.9% year-over-year growth in non-GAAP operating profit, nearly reaching $2 billion. Furthermore, the adjusted EPS of $1.32 exceeded consensus estimates by 28.2%, enhancing investor confidence.

In comparison, GE Aerospace has outperformed RTX Corporation’s (RTX) 47.9% surge over the last year and its 10.1% gains over the past six months.

Among the 20 analysts covering GE Stock, the consensus rating is a “Strong Buy.” The average price target of $230.63 reflects an 11.4% premium over current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.