What to Expect from GE Aero's Earnings

GE Aero GE will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate GE Aero to report an earnings per share (EPS) of $1.11.

GE Aero bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.22, leading to a 5.64% drop in the share price on the subsequent day.

Here's a look at GE Aero's past performance and the resulting price change:

Stock Performance

Shares of GE Aero were trading at $192.61 as of October 18. Over the last 52-week period, shares are up 114.16%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about GE Aero

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on GE Aero.

The consensus rating for GE Aero is Outperform, based on 8 analyst ratings. With an average one-year price target of $210.5, there's a potential 9.29% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of RTX, Lockheed Martin and General Dynamics, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• RTX is maintaining an Neutral status according to analysts, with an average 1-year price target of $128.1, indicating a potential 33.49% downside.
• Lockheed Martin is maintaining an Buy status according to analysts, with an average 1-year price target of $594.0, indicating a potential 208.4% upside.
• The consensus among analysts is an Outperform trajectory for General Dynamics, with an average 1-year price target of $330.1, indicating a potential 71.38% upside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for RTX, Lockheed Martin and General Dynamics are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

GE Aero ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. GE Aero is at the bottom for Return on Equity.

Get to Know GE Aero Better

GE Aerospace is the global leader in designing, manufacturing, and servicing large aircraft engines, along with partner Safran in their CFM joint venture. With its massive global installed base of nearly 70,000 commercial and military engines, GE Aerospace earns most of its profits on recurring service revenue of that equipment, which operates for decades. GE Aerospace is the remaining core business of the company formed in 1892 with historical ties to American inventor Thomas Edison; that company became a storied conglomerate with peak revenue of $130 billion in 2000. GE spun off its appliance, finance, healthcare, and wind and power businesses between 2016 and 2024.

A Deep Dive into GE Aero's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: GE Aero displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 3.87%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.92%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): GE Aero's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.23% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): GE Aero's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.88%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: GE Aero's debt-to-equity ratio surpasses industry norms, standing at 1.06. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for GE Aero visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.