GE(GE) ZACKS·2025-01-21 19:10Earnings 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 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 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 1.02 [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]