Shares of General Electric Co (NYSE:GE) climbed 4% on Tuesday morning after GE Aerospace posted better-than-expected first-quarter earnings, driven by strong demand for commercial engine maintenance and gains in its defense business, and reaffirmed its full-year forecast. The aerospace supplier reported adjusted earnings per share of $1.49 for the quarter ended March 31, topping analysts' average estimate of $1.27, according to LSEG data.
Although the revenue and EPS for GE (GE) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
GE Aerospace (GE) shares rose in premarket trading Tuesday after the company's first-quarter results came in above expectations.
GE's first-quarter results are likely to benefit from strength across its commercial and defense end markets. High costs and expenses are likely to have been spoilsport.
GE Aerospace's resilience is evident as its stock declined only 7.8% compared to the S&P 500's 13.7% drop, reflecting its long-term demand and strong service margins. Risks include potential supply chain disruptions and lower GDP growth, which could impact airplane demand and, subsequently, aero engines and services. EBITDA and free cash flow estimates have seen marginal reductions, leading to a revised price target from $239 to $206.25, driven by lower industry trading multiples.
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I am upgrading GE Aerospace to a buy rating due to a valuation reset after a 20% peak-to-trough plunge amid a global market rout. GE's Q4 results were strong, with EPS and revenue beating forecasts, and impressive free cash flow, driven by robust orders and upbeat guidance. Despite macroeconomic risks, GE's growth prospects remain solid, supported by a high number of EPS upgrades and a significant buyback program.
GE Aerospace's strong performance and restructuring under CEO Larry Culp have positioned the company for long-term growth in the aviation industry. GE's impressive Q1 earnings, with EPS and revenue beating expectations, and a robust order book highlight its financial strength. The aviation industry's growth, driven by rising demand in emerging markets, supports GE's undervaluation, despite its high forward P/E ratio.
Shares of GE Aerospace (GE -2.99%) traded nearly 3% lower in the final hour of trading despite a Wall Street analyst lifting his price target on the stock.
GE clinches a deal to supply Korean Air with GEnx and GE9X engines for the fleet of 787-10s and 777- 9s aircraft.
StandardAero, Inc., a pure-play aero engine company, shows strong growth prospects in commercial aerospace, military, and business aviation, with a diverse geographic sales distribution. Despite negative free cash flow in 2024 due to investments, StandardAero expects double-digit sales growth and stable margins in 2025, with positive free cash flow. SARO stock is rated a buy, supported by 14% annual EBITDA growth, significant future free cash flow, and potential accretive M&A opportunities.
Three U.S. bigwigs flying high year to date with more upside are GILD, GE and PGR.