HomeMost PopularInvestingGE Aerospace (GE) Debuts as Aviation-Focused Public Company

GE Aerospace (GE) Debuts as Aviation-Focused Public Company

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Embracing New Heights: GE Aerospace Takes Flight as Independent Entity

GE Aerospace Soars as Independent Company

General Electric Aerospace (GE) has emerged as a distinct public entity after the spin-off of GE Vernova business from General Electric. This momentous event marks the culmination of General Electric’s extensive portfolio restructuring efforts, resulting in the formation of three independent publicly traded companies.

Post-spin-off, General Electric now operates solely as an aviation-focused entity, known as GE Aerospace, while GE Vernova specializes in energy transition solutions. Both GE Aerospace and GE Vernova debuted on the NYSE on Apr 2, 2024, under the tickers GE and GEV, respectively.

Shareholders were entitled to receive one share of GE Vernova stock for every four shares of General Electric stock held on the record date for the distribution, which was Mar 19, 2024. This separation was executed in a tax-efficient manner.

GE has undergone significant restructuring actions over the years to enhance its business operations and financial standing. Preceding the GE Vernova spin-off, the company also transitioned its healthcare unit, GE HealthCare, into an autonomous public company in January 2023. The separation into three public entities is expected to provide each business with enhanced operational focus, capital allocation practices, and financial resilience.

It is essential to note that GE Aerospace is scheduled to unveil its first-quarter 2024 results on Apr 23, 2024, before the markets open.

The Flight Ahead: Stock Performance & Future Prospects

GE currently holds a Zacks Rank #3 (Hold).

GE Aerospace has been reaping the benefits of robust demand for commercial engines and services in recent times. The company’s performance is expected to be buoyed by increased revenues from commercial services, higher orders for LEAP engines and aftermarket services, coupled with adept operational execution.

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In the past year, GE’s stock has skyrocketed by 40.8%, far outpacing the industry’s growth of 8.9%.

However, GE has been grappling with challenges stemming from high costs of sales and operating expenditures.

Promising Picks in the Aerospace Sector

Among the notable companies in the same sector are:

Carlisle Companies Incorporated (CSL) currently boasts a Zacks Rank #1 (Strong Buy). CSL has delivered an average earnings surprise of 7.6% over the past four quarters, and analysts have increased the earnings estimate for 2024 by 9.7% in the last 60 days.

Griffon Corporation (GFF) holds a Zacks Rank #2 (Buy) and has recorded an impressive average earnings surprise of 42% over the trailing four quarters. Despite a 0.9% decline in analysts’ earnings estimates for fiscal 2024 in the past 60 days, GFF remains a strong competitor.

Danaher Corporation (DHR) also carries a Zacks Rank #2. With an average earnings surprise of 6.8% over the last four quarters, analysts have revised the earnings estimate for 2024 downwards by 2.6% in the past 60 days.

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

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