Investors got their first taste of what a standalone company is GE Aerospace (NYSE:GE) what it might look like, and they apparently like what they see. Shares of the jet engine maker were up 6% Tuesday as of 11 a.m. ET after the company reported first-quarter results.
Aeronautics takes the lead
GE Aerospace is what remains of the once legendary conglomerate after spinning off its energy business as GE Vernova April 2nd. The first-quarter report includes Vernova results but shows the strength of the aerospace unit.
GE Aerospace earned $0.82 per share in the quarter on revenue of $16.1 billion, easily beating the consensus estimate of $0.65 per share on revenue of 15, 3 billion dollars. Revenue grew 11%, with aerospace sales up 15% year over year.
The company expects full-year earnings of between $3.80 and $4.05 per share, in line with Wall Street’s expectations of $3.94 per share, and GE Aerospace also raised its operating profit forecast by $100 million, in the range of $6.2 billion to $6.6 billion. .
“Commercial Engines & Services and Defense & Propulsion Technologies delivered double-digit growth in revenue, earnings and free cash flow during the quarter,” CEO Lawrence Culp said in a statement . “As a global aerospace leader, we will continue to prioritize safety, quality, delivery and cost – always in that order – while investing in our future and driving profitable growth at long term.”
Is GE Aerospace Stock a Buy After Strong Earnings Report?
The results highlight the strength of demand in the commercial aviation sector, with Airlines companies seeing strong demand while battling equipment shortages partly due to problems Boeing And RTX. Commercial services increased 12% during the quarter, a reminder that it is not just new engines that are in demand, but also parts and services for the existing fleet.
GE Aerospace reported total orders of $11 billion in the quarter, up 34% year-over-year, and generated an operating profit margin of 19%, up 140 basis points. With macroeconomic and industry conditions poised to outperform in the coming quarters, there is reason to believe GE Aerospace can fly higher from here on out.
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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Mad Motley has a disclosure policy.
Why GE Aerospace Stock is Taking Off Today was originally published by The Motley Fool
