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Evendale, Ohio-based GE Aerospace (GE) is a global leader in aerospace propulsion, services, and systems, with an installed base of approximately 44,000 commercial and 26,000 military aircraft engines. Valued at $177.24 billion by market cap, the company designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also provides aftermarket services to support its products. The leading provider of jet and turboprop engines is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, Jul. 23.
Ahead of the event, analysts expect GE to report a profit of $0.98 per share on a diluted basis, up 44.1% from $0.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the first quarter, its aerospace orders came in at $11 billion, up 34% year over year.
For fiscal 2024, analysts expect GE to report EPS of $4.02, up 43.1% from $2.81 in fiscal 2023.
GE stock has outperformed the S&P 500’s ($SPX) 17.3% gains on a YTD basis, with shares up 57.4% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 8.8% gains over the same time frame.
On Jun. 13, GE shares closed down more than 3% after JPMorgan Chase lowered its estimate for the company’s Q2 sales to $8.4 billion, below the Wall Street estimates of $8.85 billion, due to ongoing supply-chain constraints that are likely to affect new engine deliveries in 2024.
GE’s overall outperformance can be attributed to its robust Q1 results and promising future guidance. On Apr. 23, GE reported its Q1 results, and the stock closed up more than 8%. Its adjusted EPS was $0.82, surpassing the consensus estimates of $0.65, and its revenue stood at $15.2 billion, falling marginally short of Wall Street’s forecast of $15.3 billion.
GE expects its full-year operating profit to be between $6.2 billion and $6.6 billion, up from the previous outlook of between $6 billion and $6.5 billion. Its adjusted EPS is expected to come between $3.80 and $4.05. Meanwhile, GE Aerospace aims to achieve a $10 billion operating profit by 2028.
Analysts’ consensus opinion on GE stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 13 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and one recommends a “Hold.” The average analyst price target for GE is $187.28., indicating a 15.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
