GE Aerospace raised its 2025 profit forecast on Tuesday, projecting a strong finish to the year on robust demand for aftermarket maintenance services due to a shortage of new jets. ...

Financial Performance - Total revenue for Q3 2025 reached $12.2 billion, a 24% increase year-over-year, with adjusted revenue at $11.3 billion, up 26%[4] - GAAP profit for the quarter was $2.5 billion, reflecting a 33% increase, while adjusted EPS rose 44% to $1.66[4] - Total revenue for Q3 2025 reached $12,181 million, a 24% increase from $9,842 million in Q3 2024[22] - Adjusted revenue for Q3 2025 was $11,305 million, up 26% from $8,943 million in Q3 2024[22] - Operating profit for Q3 2025 was $2,299 million, reflecting a 26% increase compared to $1,818 million in Q3 2024[22] - Adjusted net income for Q3 2025 was $1,764 million, a 41% increase from $1,255 million in Q3 2024[23] - Free cash flow (FCF) for Q3 2025 was $2,362 million, representing a 30% increase from $1,820 million in Q3 2024[27] - Profit margin (GAAP) for Q3 2025 improved to 20.7%, up 150 basis points from 19.2% in Q3 2024[22] - Adjusted operating profit margin for Q3 2025 remained stable at 20.3% compared to Q3 2024[22] - The company reported a conversion rate of free cash flow at 134% for Q3 2025[27] Orders and Revenue Growth - Total orders amounted to $12.8 billion, a 2% increase, with Commercial Engines & Services (CES) orders at $10.3 billion, up 5%[4][12] - CES revenue grew 27% to $8.9 billion, driven by a 28% increase in services revenue and a 33% rise in internal shop visit revenue[12] - Defense & Propulsion Technologies (DPT) revenue increased 26% to $2.8 billion, with operating profit up 75% to $386 million[14] Future Outlook - GE Aerospace raised its full-year 2025 guidance, expecting adjusted revenue growth in the high-teens and adjusted EPS between $6.00 and $6.20[8] - The company expects significant growth in operating profit and adjusted EPS for 2025, although specific GAAP reconciliations cannot be provided due to uncertainties[28][29] Strategic Initiatives - The company secured significant new engine orders, including a historic deal with Korean Air for 103 Boeing aircraft[5] - GE Aerospace completed its first supersonic test campaign and announced a partnership with BETA Technologies for hybrid electric flight development[5] - The company plans to use adjusted revenue and operating profit as performance metrics for its annual executive incentive plan for 2025[22] Operational Focus - The operating profit margin for CES improved by 170 basis points to 27.4% in Q3 2025[12] - GE Aerospace has an installed base of approximately 49,000 commercial and 29,000 military aircraft engines[39] - The company employs around 53,000 people, leveraging over a century of innovation in aerospace[39] Risks and Challenges - Forward-looking statements indicate potential impacts from macroeconomic conditions, including inflation and supply chain disruptions[33] - Risks include changes in demand for air travel and the financial strength of key aerospace industry participants[33] - Future financial performance may be influenced by global economic trends and geopolitical risks, including sanctions and trade tensions[33] - The company does not undertake to update its forward-looking statements, acknowledging potential discrepancies with actual results[34] Commitment to Innovation - The company is focused on executing planned transactions and capital allocation strategies, including dividends and share repurchases[33] - GE Aerospace is committed to research and development for new products and services, aiming for cost-effective launches[33] - The company emphasizes operational execution amidst market growth and the ramping of newer product platforms[33] Additional Information - Additional financial information is available on GE Aerospace's investor relations website[36]

Market Overview - U.S. stock futures are down following a rally on Monday, with major indices showing slight declines pre-market [1][3] - The federal government shutdown is impacting billions of dollars worth of projects, affecting the economy and people's lives [1] Earnings Watch - Investors are focused on earnings reports from major companies including Netflix, Coca-Cola, Philip Morris, and RTX Corp, which will influence market sentiment for the week [2][4][14] - Netflix shares are up 0.27% pre-market, with expectations for strong third-quarter results [5] - Coca-Cola shares are up 0.10% pre-market, with a favorable price trend despite lower performance metrics [5] - Philip Morris shares are down 0.04% pre-market ahead of its earnings call [4] - RTX Corp shares are up 0.49% pre-market, with high scores in Momentum and Quality [14] Treasury Yields and Market Sentiment - The 10-year Treasury bond yield is at 3.97%, while the two-year bond yield is at 3.45% [3] - Market expectations indicate a 98.9% likelihood of the Federal Reserve cutting interest rates in the upcoming October meeting [3] Stock Performance - Major indices showed gains on Monday, with the Nasdaq Composite up 1.37%, S&P 500 up 1.07%, and Dow Jones up 1.12% [8] - Pre-market performance shows declines for SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF [3] Retail Investor Behavior - Retail investors have been net buyers of U.S. stocks in 23 of the last 26 weeks, with significant purchases noted last week [10] - The VIX score indicates higher volatility, yet the S&P 500 remains near all-time highs [10][11]

Market Overview - U.S. stock futures are down following a rally on Monday, with major indices showing slight declines pre-market [1] - The federal government shutdown is impacting billions of dollars worth of projects, affecting the economy and people's lives [1] Earnings Watch - Investors are focused on earnings reports from major companies including Netflix, Coca-Cola, Philip Morris, and RTX Corp, which will influence market sentiment for the week [2] - Netflix shares are up 0.27% pre-market, with expectations for strong third-quarter results [5] - Coca-Cola shares are up 0.10% pre-market, anticipating its third-quarter results [5] - Philip Morris shares are down 0.04% pre-market ahead of its earnings call [4] - RTX Corp shares are up 0.49% pre-market, with investors awaiting its third-quarter results [14] Treasury Yields and Market Sentiment - The 10-year Treasury bond yield is at 3.97%, while the two-year bond yield is at 3.45% [3] - Market expectations indicate a 98.9% likelihood of the Federal Reserve cutting interest rates in the upcoming October meeting [3] Stock Performance - Major indices showed the following pre-market changes: Dow Jones -0.19%, S&P 500 -0.13%, Nasdaq 100 -0.16%, Russell 2000 -0.27% [3] - The SPDR S&P 500 ETF Trust (SPY) is down 0.07% at $670.79, while the Invesco QQQ Trust ETF (QQQ) is down 0.36% at $611.18 [3] Analyst Insights - Retail investors have been net buyers of U.S. stocks for 23 of the last 26 weeks, with the largest purchase in five months occurring last week [10] - The VIX score nearly hit 29, indicating higher volatility, yet the S&P 500 remains near all-time highs [10][11]

Group 1: Earnings Expectations - Coca-Cola Co. is expected to report quarterly earnings of 78 cents per share on revenue of $12.39 billion [2] - General Electric Co. is projected to post quarterly earnings of $1.44 per share on revenue of $10.40 billion [2] - General Motors Co. is anticipated to report quarterly earnings of $2.31 per share on revenue of $45.27 billion [2] - Netflix Inc. is expected to report quarterly earnings of $6.97 per share on revenue of $11.51 billion [2] Group 2: Company Performance - Crown Holdings Inc. reported quarterly adjusted earnings of $2.24 per share, exceeding the analyst estimate of $2, with revenue of $3.2 billion, surpassing the Street estimate of $3.12 billion [2] - Crown Holdings shares increased by 8% to $102.00 in after-hours trading following the earnings report [2] - Coca-Cola shares rose 0.3% to $68.64 in after-hours trading [2] - General Electric shares increased by 1.1% to $305.85 in after-hours trading [2] - General Motors shares fell 0.2% to $57.90 in after-hours trading [2] - Netflix shares rose 0.5% to $1,244.97 in after-hours trading [2]

Core Insights - Defense stocks may present a buying opportunity as the government shutdown continues, with analysts suggesting potential upward revisions in outlooks once funding clarity is restored [1][3][4] Market Performance - Defense stocks have underperformed during the government shutdown, with the iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA) remaining flat while the S&P 500 rose nearly 2% [2] - Northrop Grumman (NOC) shares have decreased about 1% since the shutdown began but have increased approximately 28% in 2025, outperforming the S&P 500's nearly 15% rise [5][9] Analyst Recommendations - Analysts from Morgan Stanley recommend buying defense stocks with muted outlooks, anticipating upward revisions as government funding issues are resolved [3][7] - Companies such as Northrop Grumman, Lockheed Martin (LMT), and RTX Corp. (RTX) are expected to report earnings soon, with analysts predicting conservative outlooks due to the ongoing shutdown [7][8] Future Expectations - The White House Economic Advisor indicated that the government shutdown is likely to end soon, which could positively impact defense stocks [9]

Group 1 - GE Aerospace is trading near record highs ahead of its Q3 earnings report, with analysts expressing bullish sentiment regarding the company and its stock [1] - Analysts expect a solid quarter for GE Aerospace, with increasing sentiment around aircraft original equipment manufacturer production [1] - Aftermarket demand trends for GE Aerospace continue to be supported by rising passenger travel [1] Group 2 - L3 Harris has secured a share of a significant contract, indicating positive momentum as several defense giants prepare to report earnings [2]

Group 1: Earnings Results - GE Aerospace is set to release its third-quarter earnings results on October 21, with expected earnings of $1.47 per share, an increase from $1.15 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $10.41 billion, compared to $8.94 billion a year earlier [1] Group 2: Recent Developments - On September 23, Kratos Defense & Security Solutions Inc. and GE Aerospace began altitude testing of the GEK800 engine, which is designed for unmanned aerial systems and collaborative combat aircraft [2] - GE Aerospace shares experienced a slight increase of 0.1%, closing at $300.14 [2] Group 3: Analyst Ratings - Barclays analyst Julian Mitchell maintained an Overweight rating and raised the price target from $230 to $295 [5] - RBC Capital analyst Ken Herbert maintained an Outperform rating and increased the price target from $275 to $300 [5] - Citigroup analyst Andrew Kaplowitz maintained a Buy rating and raised the price target from $296 to $309 [5] - UBS analyst Gavin Parsons maintained a Buy rating and increased the price target from $300 to $321 [5] - B of A Securities analyst Ronald Epstein maintained a Buy rating and raised the price target from $225 to $230 [5]

Time now for options corner. Joining us to take a deeper look at this chart is Rick Dukat, lead market technician here on Schwab Network. All right, Rick, take us through the trends you notice in this chart.>> Yes, good morning. And when we look at GE, you know, it's split into three companies. GE, the aerospace and defense company, GE Vernova, the energy company, and GE uh healthcare here.And it's kind of an interesting microcosm of how the market has gone here. uh energy very strong and GE itself doing qu ...

Core Viewpoint - General Electric (GE) is poised for a positive earnings report, with expectations of increased earnings per share (EPS) and revenue driven by strong demand in its Aerospace division [1][3][4]. Financial Performance Expectations - GE Aerospace is expected to report an EPS of $1.46, reflecting a 27% increase from the previous year, and revenue of approximately $10.4 billion, a 15.6% growth from $8.94 billion [3][6]. - The company has a history of exceeding earnings expectations, with an average earnings surprise of 16.1% over the last four quarters [4]. Market Reaction to Earnings - Historically, GE's stock has shown a 60% chance of a one-day gain following earnings announcements, with a median positive movement of 5.1% and a maximum single-day gain of 8.3% [2][6]. - The anticipation of favorable stock performance is linked to the company's ability to meet or exceed earnings expectations [2]. Financial Metrics - GE's financial metrics indicate strong investor confidence, with a P/E ratio of 41.29 and a price-to-sales ratio of 7.65 [5]. - The company's debt-to-equity ratio stands at 0.99, and the current ratio is 1.04, suggesting a balanced financial position that supports growth opportunities [5][6].