GE Aerospace Surges 6.37% On Earnings Report

General Electric ( GE ), a prominent global conglomerate, experienced a 6.37% surge in its stock prices following the release of its Q1 report. GE Aerospace, a subsidiary of General Electric, exceeded Q1 expectations, which included results for GE Vernova before the spinoff.

GE Aerospace reported standalone adjusted earnings of 92 cents per share for the quarter. Solo adjusted revenue saw a 15% increase to $8.1 billion. On a consolidated basis, adjusted earnings for both GE Aerospace and GE Vernova were 82 cents per share, with consolidated GAAP earnings amounting to $1.38 per share. Total consolidated revenue increased by 11% to $16.1 billion, surpassing FactSet analysts' expectations of 65 cents per share on $15.25 billion in revenue.

Total orders for GE Aerospace rose 34% to $11 billion, primarily driven by orders for commercial engines and services. The company registered free cash flow of $1.7 billion for the quarter.

For fiscal 2024, GE Aerospace projects an adjusted earnings range of $3.80 to $4.05 per share, with free cash flow exceeding $5 billion. GE Aerospace raised its total operating profit outlook from $6 billion to $6.5 billion to $6.2 billion to $6.6 billion. GE anticipates mid-to-high teens growth in commercial engines and services revenue. It lifted its operating profit outlook for the business segment by $0.1 billion to $6.1 billion to $6.4 billion. GE Aerospace expects defense and propulsion technologies revenue to rise in the mid-to-high-single-digits, with its defense operating profit ranging from $1 billion to $1.3 billion.

In early March, GE Aerospace adjusted its 2025 revenue outlook to low double-digit growth. It also forecasts an operating profit of roughly $7.3 billion as the midpoint for the year, to reach an operating profit of $10 billion in 2028.

GE Aerospace plans to deliver approximately 70% to 75% of cash to shareholders through dividends and share buybacks, including an initial dividend payout at 30% of net income, subject to board approval, and $15 billion in share buybacks.

TD Cowen upgraded GE stock to buy from hold on April 9, citing GE Aerospace's commercial aftermarket prospects in light of Boeing production issues. Over 50% of GE Aerospace sales and 75% of its profits come from the commercial aerospace aftermarket following the spinoff. The firm raised its price target on GE shares to $180 from $175.

GE stock has rallied 4.6% early Tuesday. Shares rose 1.4% Monday, bouncing off their 21-day exponential moving average. GE stock jumped 37% in 2024 leading up to the April 2 spinout. GE Aerospace stock saw a nearly 54% increase so far this year and is trading at its highest level since July 2016.