Evendale, Ohio-based General Electric Company, is doing business as GE Aerospace (GE), which designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. Valued at $186.1 billion by market cap, the company is a global aerospace leader in attractive propulsion, services, and systems sectors with an installed base of more than 44,000 commercial and over 26,000 military aircraft engines. The aerospace giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Jan. 23.
Ahead of the event, analysts expect GE to report a profit of $1.03 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect GE to report EPS of $4.24, up 50.9% from $2.81 in fiscal 2023. Its EPS is expected to rise 22.4% year over year to $5.19 in fiscal 2025.
GE stock has outperformed the S&P 500’s ($SPX) 26.3% gains over the past 52 weeks, with shares up 73.3% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 19.4% gains over the same time frame.
GE's strong performance is driven by its aircraft engine services, particularly with its joint venture partner Safran in CFM International. Their engines are the primary choice for a variety of aircraft models, including the Boeing 737 MAX, Airbus A320 neo family, Boeing 777, 777X, 747, 787, and Airbus A330, establishing GE as a dominant player in the commercial aircraft engine market.
On Oct. 22, GE shares closed down more than 9% after reporting its Q3 results. Its adjusted revenue stood at $8.9 billion, up 5.7% year over year. Its adjusted EPS increased 25% year over year to $1.15.
Analysts’ consensus opinion on GE stock is bullish, with a “Strong Buy” rating overall. Out of 18 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and two give a “Hold.” GE’s average analyst price target is $209.78, indicating a potential upside of 22% from the current levels.
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