If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.GE Aerospace ( GE ) has been one of my favorite aerospace stocks. However, in October I downgraded the stock from buy to hold as the company’s stock price showed overvaluation against expected earningsDhierin-Perkash Bechai is an aerospace, defense ...

Group 1 - The fourth quarter earnings season is gaining momentum, with major financial institutions like Charles Schwab and regional banks such as Fifth Third set to report results, alongside Netflix and Intel, which are expected to be focal points [1][5] - An optimistic consensus is emerging, with 7% of S&P 500 companies having reported fourth quarter results as of January 16, and analysts projecting an 8.2% increase in earnings per share for the quarter, marking the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially anticipated an 8.3% increase in earnings per share heading into the reporting period, a decrease from the previous quarter's 13.6% growth rate, but expectations have been raised recently, particularly for technology companies [3] Group 2 - The current earnings season is expected to test the improved stock market breadth observed at the beginning of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence market dynamics [4] - This week's earnings releases will also include reports from notable companies such as United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One [5]

Group 1 - The core point of the article is that GE has consistently outperformed Wall Street's earnings estimates for 12 consecutive quarters [1]

Core Viewpoint - GE Aerospace's earnings must exceed mere stock price increases for bullish investors to regain confidence [1] Group 1 - The company is facing pressure to deliver strong earnings results that can sustain investor interest and confidence [1] - There is a need for GE Aerospace to demonstrate consistent performance beyond short-term stock price fluctuations [1] - The current market sentiment indicates that investors are looking for more substantial evidence of growth and profitability [1]

Core Viewpoint - GE Aerospace is expected to report strong growth in its fourth quarter 2025 financials, supported by solid demand and operational efficiency, despite recent subdued share performance [1][5]. Financial Performance - For the first nine months of 2025, adjusted revenue increased by 21% year-over-year, with operating margins expanding by 140 basis points, indicating volume growth and operational efficiency [2]. - Adjusted earnings per share surged nearly 46%, showcasing strong operating leverage within the business [2]. - Free cash flow reached $5.9 billion, and the company exited the third quarter with a $175 billion backlog, providing a robust foundation for future revenue growth [2]. Market Sentiment - The ongoing momentum in GE's businesses is expected to contribute to strong growth in Q4, with the stock's 14-day Relative Strength Index (RSI) at 59.55, indicating potential for upward movement if results exceed expectations [3]. - Derivatives markets anticipate a moderate reaction to the earnings release, with options pricing suggesting a post-earnings move of approximately 4.6% in either direction [4]. Business Drivers - GE Aerospace's business is benefiting from a large installed base of aircraft engines, strong demand for aftermarket services, and a steady recovery in engine deliveries, which are expected to support revenue growth and profitability [5]. - Strength is anticipated across major operating segments, particularly in the Commercial Engines & Services business, driven by rising services revenue and improving equipment sales [6]. - Increased demand for servicing and spare parts, as more engines cycle through Maintenance, Repair, and Overhaul facilities, is allowing the company to capitalize on higher volumes and favorable pricing conditions [6].

Core Viewpoint - GE Aerospace is experiencing significant financial growth, with free cash flow conversion exceeding 130%, leading to increased shareholder returns since its spin-off from General Electric in 2024 [1] Financial Performance - The company reported a 26% increase in revenue to $11.3 billion and a 26% rise in operating profit to $2.3 billion for the third quarter [4] - Adjusted earnings per share surged 44% to $1.66 [4] - The stock has returned 71% over the last 12 months, with adjusted earnings expected to grow by 35.6% in 2025 following a 63.7% increase in 2024 [3] Shareholder Returns - GE Aerospace has committed to returning $24 billion to shareholders from 2024 to 2026, representing a 20% increase from initial plans [2] Market Position - The company operates the largest installed base of commercial jet engines globally, with 78,000 engines powering three out of every four commercial aircraft [5] - The extensive fleet generates predictable high-margin services revenue [5] Upcoming Expectations - Analysts forecast revenue in Q4 to increase to $11.2 billion from $9.88 billion year-over-year, with adjusted earnings per share expected to rise to $1.43 from $1.32 [6] Supply Chain Improvements - Services revenue increased by 28% due to improved material availability and increased shop visits, with internal shop visit revenue growing by 33% [8] - Spare parts sales rose by 25% as supply chain constraints eased, and LEAP engine deliveries surged by 40% year-over-year in Q3 [8]

Group 1 - The fourth quarter earnings season is gaining momentum, with major financial institutions like Charles Schwab and regional banks such as Fifth Third set to report results, alongside Netflix and Intel, which are expected to be focal points of the earnings calendar [1][5] - An optimistic consensus is emerging, with 7% of S&P 500 companies having reported fourth quarter results as of January 16, and analysts projecting an 8.2% increase in earnings per share for the quarter, marking the potential for the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially anticipated an 8.3% increase in earnings per share heading into the reporting period, a decrease from the previous quarter's 13.6% growth rate, but expectations have been raised recently, particularly for technology companies that have been key drivers of earnings growth [3] Group 2 - The current earnings season is expected to test the improved stock market breadth observed at the beginning of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence market dynamics [4] - This week's earnings releases will also include reports from notable companies such as United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One [5]

GE Aerospace (NYSE:GE) is among the 10 Best Defense Stocks to Buy in the S&P 500. The company is an important player in the defense sector. Last week, in an initiative with Lockheed Martin, the company announced the completion of a series of tests showing the effectiveness of a liquid-fueled rotating detonation ramjet in hypersonic missiles. GE Aerospace (GE) a Strong Buy, Analysts Forecast 7% Upside This marked the first such collaboration between the companies under a joint technology development arran ...

Core Viewpoint - GE Aerospace is expected to report strong fourth-quarter 2025 results, with revenues projected to grow by 14% year-over-year to $11.26 billion and earnings per share estimated at $1.42, reflecting a 7.6% increase from the previous year [1][9]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for GE's fourth-quarter revenues is $11.26 billion, indicating a 14% growth from the prior-year quarter [1]. - The consensus estimate for earnings is $1.42 per share, which has increased by 1.4% over the past 60 days, representing a 7.6% growth from the year-ago quarter [1]. - GE has consistently delivered better-than-expected results, with an average earnings surprise of 19.1% over the last four quarters [2]. Group 2: Factors Influencing Performance - Increased utilization of GE's engine platforms in both commercial and defense markets is expected to drive results, with the Commercial Engines & Services segment projected to generate $9.09 billion in revenues, an 18.8% year-over-year increase [3]. - The Defense & Propulsion Technologies business is anticipated to benefit from growing demand for propulsion technologies and aftermarket services, with revenues expected to reach $2.73 billion, reflecting an 8% year-over-year increase [4]. - Significant investments in expanding and upgrading manufacturing facilities are likely to enhance operational capacity and meet rising demand from commercial and defense customers [5]. Group 3: Challenges and Risks - GE has faced high costs and operating expenses on certain projects, which may impact performance [6]. - Supply chain challenges and labor shortages in the aerospace and defense sectors are expected to affect results in the fourth quarter [6]. Group 4: Earnings Predictions - The earnings model indicates a potential earnings beat for GE, supported by a positive Earnings ESP of +1.98% and a Zacks Rank of 3 [7][8].

GE Aerospace (NYSE:GE) is one of the stocks on Jim Cramer’s game plan for this week. Mad Money’s host highlighted the stock as a “Cramer fave,” as he commented: "Another Cramer fave, GE Aerospace also reports that morning and given all the backlog of planes, I can’t imagine it’ll be anything other than spectacular. And I don’t think that spectacular is too positive a word for a company that’s captained by the great Larry Culp. I don’t know if you saw him when we were up at Harvard Business School. I think ...