Core Viewpoint - GE Aerospace reported better-than-expected fourth-quarter financial results and provided an optimistic FY26 EPS outlook, despite shares trading lower on the day of the announcement [1]. Financial Performance - The company guided for adjusted EPS of $7.10 to $7.40 for 2026, slightly above the $7.12 estimate, and projected free cash flow of $8.0 billion to $8.4 billion, with an adjusted effective tax rate below 17% and no planned debt repayment [1]. - GE Aerospace's fourth-quarter adjusted EPS was $1.57, exceeding Bank of America's estimate of $1.39 and Bloomberg's estimate of $1.44 [2]. - Revenues for the quarter reached $11.865 billion, surpassing Bank of America's estimate of $11.25 billion and Bloomberg's estimate of $11.236 billion [3]. Segment Performance - The Commercial Engines & Services segment generated $9.468 billion, beating Bank of America's estimate of $9.031 billion, driven by a 31% year-over-year increase in Services revenue due to higher shop visit volumes and spares output [3]. - The Defense & Propulsion Technologies segment reported $2.839 billion in revenue, above Bank of America's forecast of $2.628 billion, with Defense revenue up 2% despite a 7% volume decline, and Propulsion revenue rising 33% due to increased Avio volumes [4]. Analyst Insights - Bank of America analyst Ronald J. Epstein maintained a Buy rating on GE Aerospace with a price forecast of $365, citing strong fourth-quarter results driven by higher-than-expected revenue and margins [2]. - Epstein noted that GE Aerospace's 2026 outlook for revenue and adjusted EPS is favorable compared to Bank of America's estimates [4]. Stock Performance - GE Aerospace shares were down 5.52% at $305.81 at the time of publication [5].
What's Going On With GE Aerospace Stock On Thursday?