Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on GE Aerospace (GE), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5]. Brokerage Recommendations for GE - GE has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy, based on recommendations from 21 brokerage firms [2][14]. - Out of the 21 recommendations, 16 are Strong Buy and 2 are Buy, which account for 76.2% and 9.5% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks into five groups based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimate revisions, making it a timely tool for predicting future price movements [12]. Current Earnings Estimates for GE - The Zacks Consensus Estimate for GE's earnings has increased by 0.8% over the past month to $5.55, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for GE, suggesting a positive outlook for the stock [14].

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Group 1 - GE Aerospace reported quarterly earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and up from $1.20 per share a year ago, representing an earnings surprise of +16.08% [1] - The company posted revenues of $10.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.12%, and an increase from $8.22 billion year-over-year [2] - GE shares have increased approximately 59.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $10.14 billion, and for the current fiscal year, it is $5.55 on revenues of $39.37 billion [7] - The Aerospace - Defense industry is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] Group 3 - GE has surpassed consensus EPS estimates in all four of the last quarters, indicating strong performance consistency [2] - The estimate revisions trend for GE was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Financial Data and Key Metrics Changes - The company reported a strong second quarter with revenue exceeding $10 billion, up 23% year-over-year, and profit reaching $2.3 billion, an increase of 23% [44] - Orders were up 27%, with commercial engine services (CES) growing 30% and defense propulsion technologies (DPT) up 7% [44] - Free cash flow nearly doubled to $2.1 billion compared to the previous year [44] Business Line Data and Key Metrics Changes - CES services revenue increased by nearly 30% year-over-year, driven by internal shop visit revenue up more than 20% and spare parts revenue up over 25% [25] - DPT revenue grew 6%, with defense and systems up 6% and propulsion and additive technologies up 9% [48] - CES margins expanded by 50 basis points to 27.9%, while DPT margins declined by 20 basis points to 14.1% [47][48] Market Data and Key Metrics Changes - The company expects air traffic growth to outpace global GDP, particularly in Asia Pacific and the Middle East [16] - The commercial services backlog has increased to over $140 billion, supporting growth for years to come [16] - The defense sector is seeing solid momentum globally, with increased funding for key defense propulsion initiatives [18] Company Strategy and Development Direction - The company aims to ramp up services and equipment to support customer fleets while fulfilling strong demand for new engines [19] - Investments of over $1 billion are planned for MRO and component repair facilities over the next five years [23] - The company is focused on enhancing engine performance and expanding its supply chain and service networks [20] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 guidance across the board, expecting total revenue growth in the mid-teens, up from low double digits [49] - The outlook for 2028 has also been raised, with expectations for adjusted EPS reaching approximately $8.40 and operating profit around $11.5 billion [42] - Management expressed optimism about the company's trajectory, citing strong fundamentals and a robust order backlog [16][42] Other Important Information - The company is investing approximately $3 billion in R&D in 2025, which is 6-8% of revenue [29] - The company has a life of program win rate of 75% for GE9X engines, indicating strong demand [26] - The company is effectively sold out through the rest of the decade for commercial and defense engines [28] Q&A Session Summary Question: Can you reconcile the second half EBIT decline? - Management explained that while the second half EBIT is expected to be lower, the overall year is projected to see strong profit growth, with a better-than-expected second quarter contributing to raised revenue expectations [80][84] Question: What are the pricing assumptions for 2024-2028? - Management indicated that pricing is expected to offset inflation, with mid-single-digit pricing dynamics anticipated as the company moves beyond product launches [92][93] Question: What is the baseline for retirement rates? - Management acknowledged that retirements have been low but expect an increase as the fleet ages, with assumptions built around new aircraft deliveries and departure growth [95]

Financial Data and Key Metrics Changes - In Q2 2025, GE Aerospace reported a revenue increase of 23% year-over-year, exceeding $10 billion, with orders up 27% [41] - Profit reached $2.3 billion, a 23% increase, driven by services volume and price, resulting in margins of 23% [41] - EPS was $1.66, up 38% from the previous year, supported by a favorable tax rate and lower interest expenses [41] - Free cash flow nearly doubled to $2.1 billion compared to last year [41] Business Line Data and Key Metrics Changes - The Commercial Engines and Services (CES) segment grew revenue by 30%, with service revenue up 29% and equipment revenue up 35% [41][43] - The Defense and Propulsion Technologies (DPT) segment saw a revenue increase of 7%, with profit up 5% [41][45] - CES margins expanded by 50 basis points to 27.9%, while DPT margins declined by 20 basis points to 14.1% [41][45] Market Data and Key Metrics Changes - Departures grew nearly 4% in Q2 2025, aligning with expectations, with a conservative outlook for low single-digit growth in the second half of the year [13] - The commercial services backlog increased to over $140 billion, supporting future growth [14] - Air traffic growth is expected to outpace global GDP, particularly in Asia Pacific and the Middle East [15] Company Strategy and Development Direction - GE Aerospace aims to ramp up services and equipment to support customer fleets while fulfilling strong demand for new engines [16] - The company is investing over $1 billion in MRO and component repair facilities over the next five years to expand capacity [21] - GE Aerospace is focused on enhancing engine performance through technological advancements and operational improvements [17][26] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 guidance across all metrics, expecting total revenue growth in the mid-teens, up from low double digits [46] - The company anticipates strong adjusted revenue growth at a double-digit compounded rate through 2028, driven by robust demand for services and equipment [39] - Management expressed optimism about the long-term market growth, projecting a mid-single-digit compounded growth rate through 2028 [15] Other Important Information - GE Aerospace's R&D investment is approximately $3 billion in 2025, representing 6-8% of revenue [26] - The company has a strong competitive advantage with the world's largest installed base of engines, accumulating over 2.3 billion flight hours [26] - GE Aerospace plans to return over $24 billion to shareholders between 2024 and 2026, including $19 billion in buybacks [70] Q&A Session Summary Question: Concerns about second half EBIT guidance - Management explained that the second half EBIT guidance reflects a conservative approach, considering expected headwinds from GE9X shipments and corporate expenses [77][81] Question: Pricing assumptions and retirement rates - Management clarified that pricing is expected to offset inflation, with mid-single-digit pricing dynamics anticipated [88] - Regarding retirement rates, management noted that as the fleet ages, retirements are expected to increase, aligning with new aircraft deliveries and departure growth [92][93]

Group 1 - GE Aerospace raised its full-year financial outlook and reported second-quarter profits exceeding Wall Street expectations due to a rebound in aviation market demand, alleviating the impact of the global trade war [1] - The second-quarter revenue for GE Aerospace was $10.2 billion, a year-on-year increase of 24.1%, surpassing market expectations by $640 million; adjusted earnings per share for the second quarter were $1.66, exceeding expectations by $0.23 [1] - The company expects adjusted earnings per share for 2025 to be between $5.60 and $5.80, up from the previous forecast of no more than $5.45 [1] Group 2 - GE Aerospace anticipates revenue growth of around 15%, higher than the market's general expectation of 12.72%; the company also raised its guidance for 2025 and outlook for 2028, including achieving approximately $11.5 billion in operating profit and about $8.5 billion in free cash flow by 2028, both exceeding previous 2024 investor day projections by $1.5 billion [1] - The company is benefiting from a surge in orders, with commercial business revenue growing by 30% in the last quarter, including a historic deal to sell over 400 engines to Qatar Airways [1] - The aerospace industry is facing uncertainties due to U.S. President Trump's tariff policies, which industry leaders claim may increase costs and disrupt supply chains [1] Group 3 - The company recently received approval to resume engine deliveries to Chinese aircraft manufacturer COMAC [3] - After completing the spin-off of its energy and healthcare businesses, GE Aerospace has become an independent company [3]

Financial Performance - GE Aerospace reported adjusted revenue of $102 billion, a 23% year-over-year increase in Q2 2025[54] - The company's operating profit reached $23 billion, also a 23% increase compared to the previous year[54] - Free cash flow surged to $21 billion, a significant 92% increase year-over-year[54] - Adjusted EPS increased by 38% year-over-year, reaching $166[54] - Orders increased by 27% year-over-year, totaling $142 billion[54] Guidance and Outlook - GE Aerospace is raising its 2025 adjusted revenue growth guidance to mid-teens, up from low double-digit[55] - The company expects its 2028 operating profit to reach approximately $115 billion, an increase of $15 billion from the prior outlook[57] - GE Aerospace anticipates a free cash flow of approximately $85 billion in 2028, also a $15 billion increase from the previous forecast[57] Commercial Engines & Services (CES) - Commercial Engines & Services reported a 29% year-over-year increase in services revenue for Q2 2025[32] - Equipment revenue for CES increased by 35% year-over-year[105] - The company expects double-digit revenue growth in commercial services[62] Defense & Propulsion Technologies (DPT) - Defense & Propulsion Technologies revenue increased by 7% year-over-year in Q2 2025[108] - The U S Air Force awarded a $5 billion contract for F110 engines[37]

Group 1 - The CEO of General Electric Aviation stated that the company cannot fully offset the pressure from tariffs on its own [1] - The company is currently in communication with airlines regarding the tariff impacts [1]

通用电气航空公司首席执行官：公司在降低关税成本方面取得了进展。 ...

General Electric boosts its full-year financial guidance and tops Wall Street’s profit estimates for the second quarter https://t.co/xIY4e6Jj4y ...