- GE Aerospace reported adjusted earnings per share (EPS) of $1.32 for the fourth quarter, surpassing last year’s $0.65 and beating the estimated $1.04.
- The company’s adjusted revenue reached $9.88 billion, marking a 16% increase year-over-year.
- Revenue from commercial engines and services was $7.65 billion, exceeding the estimate of $7.35 billion.
- Defense and propulsion technologies generated $2.52 billion in revenue, slightly above the $2.49 billion estimate.
- Adjusted free cash flow rose by 21% year-over-year to $1.52 billion, beating the estimated $1.28 billion.
- For the year, GE Aerospace forecasts adjusted EPS between $5.10 and $5.45, with an estimate of $5.35.
- Anticipated adjusted free cash flow is between $6.3 billion to $6.8 billion, compared to an estimated $6.29 billion.
- Adjusted operating profit is projected to range from $7.8 billion to $8.2 billion.
- GE Aerospace has announced plans for a $7 billion share repurchase.
- The company plans to increase its dividend by 30%.
- GE Aerospace expects double-digit revenue and EPS growth for the year.
- CEO Larry Culp stated, “Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion.”
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General Electric on Smartkarma
Analyst coverage of General Electric (GE) on Smartkarma by Baptista Research reveals insights into GE Aerospace’s performance in various quarters. In the third quarter of 2024, GE Aerospace demonstrated strong growth in orders, revenue, and operating profit. Despite facing challenges in specific segments, the company reported a significant 28% increase in orders, a 6% rise in revenue, a 14% uplift in operating profit, and a 25% increase in adjusted EPS, showcasing solid operational performance.
Furthermore, Baptista Research evaluates General Electric Aerospace’s progress in aerospace engine technology in the second quarter of 2024. While the company is advancing in securing key orders and technological innovations, it is also grappling with operational challenges like supply chain bottlenecks hindering its ability to meet growing demand. Baptista Research aims to provide an independent valuation of GE Aerospace using a Discounted Cash Flow (DCF) methodology to assess its investment potential.
A look at General Electric Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Electric Company, a globally diversified technology and financial services company, has received encouraging Smart Scores in various factors essential for long-term growth. The company’s outlook is optimistic with above-average scores in Growth, Resilience, and Momentum, indicating a favorable trajectory in these key areas. While the Value and Dividend scores are average, the higher ratings in Growth, Resilience, and Momentum suggest that General Electric is positioned well for long-term success in the competitive market.
The company’s broad spectrum of products and services, ranging from aircraft engines to healthcare technologies, coupled with its solid performance in growth-related metrics, underscores General Electric’s potential for sustained development. Investors can take note of the positive indicators in Growth, Resilience, and Momentum to gauge General Electric’s long-term prospects within the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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