GE Aerospace posted strong Q2 results with $8.2 billion in revenue and $1.20 adjusted EPS, beating analyst estimates despite supply chain challenges. The company is actively addressing supply chain issues, deploying 550 engineers to key supplier locations, and reducing LEAP shop visit turnaround times by 15%. GE Aerospace's updated guidance shows increased profit expectations and free cash flow, driven by strong aftermarket support and improved equipment profitability.
Burgeoning aftermarket sales and lower-than-expected engine deliveries are boosting earnings expectations. Long-term growth looks assured, but the valuation is looking stretched now.
GE Vernova shares picked up another Buy rating on Tuesday. That's a positive for shares.
The General Electric (NYSE: GE) stock price is firing on all cylinder this year as the transformation under Lawrence Culp continued. It has jumped by over 47% this year, outperforming the closely-watched Vanguard Industrial Index Fund (VIS), which has jumped by almost 17% this year.
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GE Aerospace will generate bundles of cash from long-term aftermarket revenue from its installed base of engines. The company's margins and profits will likely improve significantly over the medium term.
GE Aerospace is a big player in the wide-moat aviation industry. A strong outlook could drive 30% earnings growth over the next few years.
I added GE Aerospace to my portfolio due to its ultra-wide moat, market penetration, and strategic position in commercial and defense engines. GE Aerospace's leadership, backed by secular growth trends and the innovative FLIGHT DECK model, makes it a perfect fit for my portfolio. I see strong potential for shareholder value through dividends and buybacks, with continued upside as GE capitalizes on growing demand and operational efficiency.
Gas power has a key role to play in the clean energy transition. GE Vernova's wind power business received some good news in August.
In a notable shift, GE Aerospace (NYSE: GE) is emerging as the premier industrial stock to own, surpassing Rolls-Royce Holdings PLC (LON: RR) for long-term investment potential.
U.S. power equipment maker GE Vernova said on Monday it has acquired the remaining ownership stake in a Saudi gas turbine producing joint venture from state-owned Dussur.
GE Aerospace soared to a new high after earnings in July. Shares are in a buy zone.