GE Aerospace Exceeds Expectations with Strong Q4 Results and Positive 2025 Guidance

Goldman Sachs analyst Noah Poponak recently shared insights on the impressive performance of GE Aerospace during the fourth quarter of FY24.

The company reported a substantial adjusted revenue growth of 16% year-over-year, reaching $9.879 billion, while the GAAP revenue was $10.812 billion, surpassing the analyst consensus estimate of $9.604 billion.

In terms of earnings, the adjusted earnings per share (EPS) for the quarter stood at $1.32, reflecting a remarkable increase of 103% compared to the previous year. This figure also exceeded the consensus expectation of $1.04.

Looking ahead, GE Aerospace anticipates an adjusted revenue growth in the low double digits for FY25, with an adjusted EPS forecast of $5.10 to $5.45, compared to the consensus estimate of $5.22.

Poponak highlighted that GE Aerospace's results outperformed Factset's consensus in several areas, including revenue, segment operating margin, EPS, and free cash flow.

Moreover, the company's Commercial Engines division exceeded expectations for both revenue and margin, while the Defense sector also slightly surpassed revenue and margin consensus estimates.

According to Poponak, the initial guidance for 2025 is notably above consensus at the higher end of the forecast ranges.

As a result, the analyst has rated the stock as a Buy, assigning a price target of $204.

For investors looking to gain exposure to GE Aerospace stock, they can consider the TCW Transform Systems ETF (NETZ) and the iShares U.S. Aerospace & Defense ETF (ITA).

Price Action: Following the strong earnings report, GE shares experienced a 6.57% increase, trading at $200.74 at last check on Thursday.

Aerospace, Earnings, Stocks