Core Insights - GE Aerospace reported fourth-quarter 2024 results with revenues and earnings exceeding the Zacks Consensus Estimate [1][2] - The company became a separate public entity in April 2024 after spinning off GE Vernova Inc. [1] Financial Performance - Adjusted earnings were $1.32 per share, surpassing the Zacks Consensus Estimate of $1.03, reflecting a 103% year-over-year increase [2] - Total revenues reached $10.8 billion, a 14% year-over-year increase, while total orders grew 46% to $15.5 billion [2] - Adjusted revenues were $9.9 billion, exceeding the consensus estimate of $9.5 billion, marking a 16% year-over-year rise [2] Segment Analysis - Revenues from the Commercial Engines & Services segment increased 19% year over year to $7.7 billion, exceeding the Zacks Consensus Estimate of $7.4 billion, driven by higher shop visit work and increased spare parts [4] - The Defense & Propulsion Technologies segment reported revenues of $2.5 billion, a 4% year-over-year increase, slightly below the consensus estimate of $2.6 billion, with total orders rising 22% to $2.8 billion [5] Cost and Margin Profile - Cost of sales grew 8.1% year over year to $6.8 billion, while selling, general, and administrative expenses decreased 3.5% to $1.2 billion [6] - Research and development expenses rose 30.1% to $385 million, with adjusted operating profit increasing 49% to $2 billion, resulting in a margin of 20.1%, up 450 basis points [6] Balance Sheet and Cash Flow - At the end of the fourth quarter, cash and cash equivalents totaled $13.6 billion, down from $15.2 billion at the end of December 2023, while long-term borrowings decreased to $17.2 billion from $19.4 billion [7] - Adjusted free cash flow for 2024 was $6.1 billion, compared to $4.7 billion in the previous year [7] Shareholder Returns - In 2024, GE Aerospace distributed $1 billion in dividends and repurchased shares worth $5.4 billion [8] Future Outlook - For 2025, GE expects adjusted revenues to grow in the low-double-digit range, with operating profit estimated between $7.8 billion and $8.2 billion [9] - Adjusted earnings are projected to be in the range of $5.10 to $5.45 per share, with free cash flow anticipated between $6.3 billion and $6.8 billion [10] - The Commercial Engines & Services segment is expected to see mid-teen revenue growth, while the Defense & Propulsion Technologies segment is projected to grow in the mid to high-single-digit range [11]

Core Viewpoint - GE Aerospace exceeded analyst expectations in Q4, leading to a 10% increase in share price, and announced plans to enhance shareholder returns [1] Financial Performance - In Q4, GE Aerospace reported earnings of $1.32 per share on revenue of $10.8 billion, surpassing Wall Street's estimates of $1.04 per share on $9.5 billion [2] - For the full year, GE Aerospace's profit rose 27% to $7.6 billion, with revenue increasing 9% to $38.7 billion [2] Demand Drivers - Strong demand for spare parts and services is driving performance, as production issues at Boeing and Airbus lead airlines to rely on existing fleets, increasing maintenance needs [3] - Aerospace suppliers typically have lower margins on sales to aircraft manufacturers but compensate with higher-margin spare parts and service sales [3] Future Outlook - CEO Larry Culp highlighted a strong finish to 2024, with $1.7 billion profit growth and $1.3 billion free cash flow growth [4] - The company plans to increase its dividend by 30% and initiate a $7 billion share repurchase plan, with expectations of double-digit revenue and earnings growth in the upcoming year [4] - GE Aerospace aims to convert all operating profits into free cash flow in the new year [4] Strategic Position - GE Aerospace is well-positioned in the aerospace supply chain, making it a suitable option for investors seeking long-term growth and income opportunities [5]

GE Aerospace exceeded expectations in Q4 2024, showcasing strong financial performance and strategic growth initiatives.GE Aerospace (GE 0.46%), a global leader in the design and manufacture of jet engines, delivered a stellar performance in its Q4 2024 earnings release on Thursday, Jan. 23. The company's adjusted EPS of $1.32 far exceeded the analyst estimate of $1.04, marking a 103% increase from the prior year's quarter. Adjusted revenue beat projections, totaling $9.9 billion compared to $8.55 billion l ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Shares of GE Aerospace (GE) surged in premarket trading Thursday after the company reported fourth-quarter results far above analysts' estimates. The manufacturer of airplane engines and other parts reported net income of $1.9 billion, or $1.75 per share, on $10.81 billion in revenue. Analysts had expected profit of $1.2 billion, or $1.10 per share, on $10.01 billion in revenue, according to estimates compiled by Visible Alpha. GE Aerospace's revenue comes largely from two units, commercial engines and ser ...

Financial Performance (Q4 2024) - Total orders for Q4 2024 increased by 46% to $15.5 billion, with total revenue (GAAP) up 14% to $10.8 billion[5] - Profit (GAAP) for Q4 2024 rose by 37% to $2.3 billion, with a profit margin of 21.2%, up 350 basis points[5] - Free cash flow for Q4 2024 increased by 21% to $1.5 billion, with cash from operating activities up 5% to $1.3 billion[5] - Adjusted EPS for Q4 2024 more than doubled to $1.32, up 103%[5] - Total revenue (GAAP) for Q4 2024 was $10,812 million, a 14% increase from $9,456 million in Q4 2023[25] - Adjusted revenue (Non-GAAP) for Q4 2024 was $9,879 million, a 16% increase from $8,547 million in Q4 2023[25] - Operating profit (Non-GAAP) for Q4 2024 was $1,988 million, a 49% increase from $1,335 million in Q4 2023[25] - Operating profit margin (Non-GAAP) for Q4 2024 was 20.1%, up 450 basis points from 15.6% in Q4 2023[25] - Adjusted earnings (Non-GAAP) for Q4 2024 were $1,433 million, up from $718 million in Q4 2023, with EPS increasing from $0.65 to $1.32[30] - Free cash flow (Non-GAAP) for Q4 2024 was $1,517 million, a 21% increase from $1,258 million in Q4 2023[33] - Insurance earnings (net of tax) for Q4 2024 were $379 million, significantly higher than $78 million in Q4 2023[30] Financial Performance (Full Year 2024) - Full-year 2024 total orders grew by 32% to $50.3 billion, with total revenue (GAAP) up 9% to $38.7 billion[5] - Full-year 2024 profit (GAAP) was $7.6 billion, down 27%, with a profit margin of 19.7%, down 980 basis points[5] - Full-year adjusted EPS increased by 56% to $4.60[5] - Total revenue (GAAP) for the full year 2024 was $38,702 million, a 9% increase from $35,348 million in 2023[25] - Adjusted revenue (Non-GAAP) for the full year 2024 was $35,121 million, a 10% increase from $31,959 million in 2023[25] - Operating profit (Non-GAAP) for the full year 2024 was $7,253 million, a 30% increase from $5,561 million in 2023[25] - Operating profit margin (Non-GAAP) for the full year 2024 was 20.7%, up 330 basis points from 17.4% in 2023[25] - Full-year 2024 Adjusted earnings (Non-GAAP) reached $5,035 million, compared to $3,241 million in 2023, with EPS rising from $2.95 to $4.60[30] - Full-year 2024 Free cash flow (Non-GAAP) totaled $6,089 million, up 28% from $4,744 million in 2023[33] - Full-year 2024 Insurance earnings (net of tax) reached $806 million, compared to $260 million in 2023[30] - Restructuring & other (net of tax) costs for 2024 were $415 million, up from $194 million in 2023[30] - Separation costs (net of tax) for 2024 were $143 million, down from $579 million in 2023[30] Segment Performance - Commercial Engines & Services segment saw Q4 2024 orders increase by 50% to $12.9 billion, with revenue up 19% to $7.7 billion[14] - Defense & Propulsion Technologies segment reported Q4 2024 orders up 22% to $2.8 billion, with revenue growing 4% to $2.5 billion[16] Future Outlook - GE Aerospace expects double-digit revenue and EPS growth in 2025, with free cash flow conversion exceeding 100%[3] - GE Aerospace plans to return $7 billion to shareholders in 2025 through share repurchases and a 30% dividend increase[6] - The company cannot provide a reconciliation of non-GAAP expectations for 2025 Operating profit, Adjusted EPS, and Free cash flow due to uncertainties[35][36][37] Company Metrics and Strategy - GE Aerospace has an installed base of approximately 45,000 commercial and 25,000 military aircraft engines[46] - GE Aerospace employs approximately 53,000 employees globally[46] - GE Aerospace is focused on inventing the future of flight and ensuring safety[46] - The company's 2024 performance stock units and annual executive incentive plan use Adjusted EPS and Free cash flow as key performance metrics[32][34] Risk Factors - The company faces risks related to regulation, government investigations, and legal compliance[47] - Cybersecurity and data security breaches are identified as potential risks for GE Aerospace[47] - Risk factors are detailed in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024[47] - Updates to risk factors will be included in the Annual Report on Form 10-K for the year ended December 31, 2024[47] Balance Sheet Changes - Total assets decreased to $123,140 million in 2024 from $173,300 million in 2023[20] - Total liabilities decreased to $103,576 million in 2024 from $144,695 million in 2023[20]

GE Aerospace GE will release its fourth-quarter financial results before the opening bell on Thursday, Jan. 23.Analysts expect the Ohio-based company to report quarterly earnings at $1.04 per share, up from $1.03 per share in the year-ago period. GE Aerospace projects quarterly revenue of $9.47 billion, compared to $19.42 billion a year earlier, according to data from Benzinga Pro.On Jan. 2, Deutsche Bank analyst Scott Deuschle maintained GE Aero with a Buy rating and lowered the price target from $235 to $ ...

Earnings Report and Estimates - GE Aerospace is scheduled to report Q4 2024 results on Jan 23, before market open [1] - The Zacks Consensus Estimate for Q4 earnings has increased 6.3% in the past 90 days [1] - The company has outperformed consensus estimates in each of the preceding four quarters, with an average surprise of 15.6% [1] - The consensus estimate for Q4 total revenues is $9.5 billion, indicating a 49% YoY decline [8] - The consensus estimate for Q4 earnings is $1.02 per share, implying a 1% decrease from the prior-year level [8] Business Performance Drivers - Growing installed base and higher utilization of engine platforms in commercial and defense markets are expected to benefit GE Aerospace [3] - Solid demand for LEAP, GEnx & GE9X engines and related services, supported by growth in air traffic, fleet renewal, and expansion activities, likely aided the Commercial Engines & Services business [3] - The consensus mark for Commercial Engines & Services business' total sales is $7.3 billion, indicating a 6.1% sequential rise [3] - The Defense & Propulsion Technologies business has benefited from the growing popularity of propulsion & additive technologies, critical aircraft systems, and aftermarket services in the defense sector [4] - Rising US & international defense budgets, positive airline & airframer dynamics, and robust demand for commercial air travel are anticipated to have boosted GE's performance [4] - The consensus mark for Defense & Propulsion Technologies business' total sales is $2.6 billion, indicating a 13.9% sequential rise [4] Strategic Initiatives and Investments - The company has been investing to expand and upgrade manufacturing facilities in the US and overseas, likely boosting operational capacities and catering to increased demand [5] - Focus on operational execution, robust backlog level, and aim to generate healthy free cash flow are likely to have bolstered the company's performance [5] - Portfolio restructuring efforts, including the spin-off of the Vernova business in April 2024, are expected to enhance operational focus on the core aerospace business and financial flexibility [6] Challenges and Risks - High costs and operating expenses due to certain projects and restructuring activities have impacted the company [7] - Supply-chain challenges, such as raw material availability and labor shortages, especially in aerospace and defense markets, likely affected the delivery of finished products [7] - Global political risks and foreign exchange headwinds, including a stronger US dollar, are likely to have hurt GE's overseas business [8] Earnings Whispers and Model Predictions - The proven model predicts an earnings beat for GE, with a positive Earnings ESP of +3.22% and a Zacks Rank of 3 [9][10] - The Most Accurate Estimate for earnings is $1.05 per share, higher than the Zacks Consensus Estimate of $1.02 [9] Other Companies with Earnings Potential - EnerSys (ENS) has an Earnings ESP of +15.67% and a Zacks Rank of 2, with Q3 fiscal 2025 results scheduled for Feb 5 [11][12] - Dover Corporation (DOV) has an Earnings ESP of +0.10% and a Zacks Rank of 3, with Q4 2024 results scheduled for Jan 30 [12][13] - AptarGroup, Inc (ATR) has an Earnings ESP of +0.16% and a Zacks Rank of 3, with Q4 2024 results scheduled for Feb 6 [13]

GE Aerospace (GE) is scheduled to report fourth-quarter 2024 results on Jan. 21, before market open.The Zacks Consensus Estimate for its fourth-quarter earnings has increased 6.3% in the past 90 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 15.6%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Let’s see how things have shaped up for GE Aerospace this earnings ...

Key TakeawaysGE Aerospace is set to report fourth-quarter results before markets open Thursday, and analysts are bullish on the maker of airplane engines and other parts.This will be the company's third full quarter since conglomerate General Electric split into three companies.GE Aerospace's stock fell following its last report. GE Aerospace (GE) is slated to report fourth-quarter results Thursday morning, and analysts are bullish on the maker of airplane engines and other parts. All nine analysts tracked ...