GE Aerospace Poised for Strong Q1 Earnings Growth Ahead of Reports

Evendale, Ohio-based GE Aerospace (GE) specializes in the design and production of engines for commercial and defense aircraft, as well as mechanical aircraft systems and electric power solutions. The company boasts a market capitalization of $179 billion, operating through its Commercial Engines and Services and Defense and Propulsion Technologies segments.

Upcoming Earnings Report and Analyst Expectations

The aerospace leader is expected to announce its first-quarter results before the market opens on Tuesday, April 22. Analysts predict GE will report a non-GAAP profit of $1.29 per share, reflecting a considerable increase of 57.3% compared to $0.82 per share from the same quarter last year. Notably, GE has a strong earnings surprise track record, having exceeded analysts’ expectations in the last four quarters.

Fiscal Year Projections

For the full fiscal year 2025, estimates suggest that GE will achieve earnings per share (EPS) of $5.40, representing a 17.4% rise from $4.60 in fiscal year 2024. Furthermore, projections indicate a significant year-over-year increase of 19.6% in earnings to $6.46 per share in fiscal year 2026.

Stock Performance Analysis

GE’s stock has increased by 7.3% over the past year, outperforming the Industrial Select Sector SPDR Fund (XLI), which declined by 6.6%, as well as the S&P 500 Index ($SPX), which fell by 2.7% during the same period.

Impressive Q4 Results and Market Response

After showcasing robust Q4 results on January 23, GE Aerospace’s stock surged by 6.6%. The company concluded the year with quarterly revenues rising 14.3% year-over-year to $10.8 billion, while adjusted revenues increased by 15.6% to $9.9 billion, surpassing expectations by about 4%. Furthermore, GE reported substantial improvement in profitability, with non-GAAP operating margins expanding by 450 basis points from last year to 20.1%. This contributed to a tremendous year-over-year growth of 48.9% in non-GAAP operating profit, reaching nearly $2 billion. Additionally, adjusted EPS of $1.32 exceeded consensus estimates by 28.2%, thereby enhancing investor confidence.

Analyst Ratings and Price Target

The consensus outlook for GE’s stock is notably optimistic, holding an overall “Strong Buy” rating. Of the 20 analysts tracking the stock, 16 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and three propose a “Hold” rating. As of the last update, the stock is trading significantly below its average price target of $231.58.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information presented is for informational purposes. For further information, please view the Barchart Disclosure Policy here.

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