A Glimpse of GE Aero's Earnings Potential

GE Aero GE is preparing to release its quarterly earnings on Tuesday, 2024-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

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

Anticipation surrounds GE Aero's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

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:

Tracking GE Aero's Stock Performance

Shares of GE Aero were trading at $192.61 as of October 18. Over the last 52-week period, shares are up 113.0%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Views on 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.

A total of 8 analyst ratings have been received for GE Aero, with the consensus rating being Outperform. The average one-year price target stands at $210.5, suggesting a potential 9.29% upside.

Analyzing Analyst Ratings Among Peers

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.

• For RTX, analysts project an Neutral trajectory, with an average 1-year price target of $128.1, indicating a potential 33.49% downside.
• The prevailing sentiment among analysts is an Buy trajectory for Lockheed Martin, with an average 1-year price target of $594.0, implying 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.

Insights: 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 also at the bottom for Gross Profit. However, it is in the middle for Return on Equity.

Delving into GE Aero's Background

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.

GE Aero: Delving into Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining GE Aero's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.87% as of 30 June, 2024, showcasing a substantial increase in 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): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.23%, the company showcases effective utilization of 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: With a high debt-to-equity ratio of 1.06, GE Aero faces challenges in effectively managing its debt levels, indicating potential financial strain.

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.