Buy GE Aerospace (GE) Stock After Strong Q4 Earnings?

Core Insights - GE Aerospace has emerged as a separate public company following the spinoff of its alternative energy segment, GE Vernova, in April 2024, positioning itself as a strong provider of jet engines, components, and integrated systems [1] - The company reported Q4 earnings of $1.32 per share, exceeding the Zacks EPS Consensus and the previous year's mark by 28%, with adjusted revenue of $9.87 billion, a 16% year-over-year increase [2] - GE Aerospace's total orders surged by 46% in Q4, with over 4,600 commercial and defense engine orders received from major clients including American Airlines, British Airways, and the Polish Armed Forces [3] Financial Performance - The reported Q4 earnings of $1.32 surpassed the estimate of $1.03 by $0.29, reflecting a surprise of 28.16% [4] - For FY25, GE Aerospace expects earnings guidance of $5.10-$5.45 per share, indicating a potential growth of 13% compared to the current Zacks EPS Consensus of $5.22 [4] - The company anticipates another year of low double-digit revenue growth [4] Dividend and Share Repurchase - GE Aerospace plans to increase its dividend by 30%, with an annual yield currently at 0.57% or $1.21 per share, expecting to generate $6.3 billion-$6.8 billion in free cash flow this year [6] - The share repurchase plan is set to increase to $7 billion, enhancing the attractiveness of the investment [6][8] Market Outlook - The positive Q4 report and outlook have led to a Zacks Rank of 3 (Hold) for GE Aerospace, with a year-to-date stock increase of 15% [7] - Future upside may depend on continued positive earnings estimate revisions in the coming weeks [7]