GE Aerospace Earnings Surpass Estimates in Q4, Surge 103% Y/Y

GE Aerospace GE has reported fourth-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.Inside GE’s HeadlinesThe company’s fourth-quarter adjusted earnings were $1.32 per share, which beat the Zacks Consensus Estimate of $1.03. The bottom line rose 103% year over year.Total revenues were $10.8 billion, indicating a year-over-year increase of 14%. Total orders grew 46% on a year-over-year basis to $15.5 billion.Adjusted revenues were $9.9 billion, marking a year-over-year rise of 16%. The metric beat the consensus estimate of $9.5 billion.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.GE’s Segmental DiscussionRevenues from the company’s Commercial Engines & Services business jumped 19% year over year to $7.7 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.4 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 50% year over year to $12.9 billion.The Defense & Propulsion Technologies segment’s revenues totaled $2.5 billion, up 4% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.6 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment increased 22% year over year to $2.8 billion.GE Aerospace Price, Consensus and EPS Surprise  GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace QuoteGE’s Margin ProfileGE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 8.1% year over year at $6.8 billion. Selling, general and administrative expenses decreased 3.5% year over year to $1.2 billion. Research and development expenses totaled $385 million, reflecting a year-over-year rise of 30.1%.GE Aerospace’s adjusted operating profit was $2 billion, up 49% year over year. The margin was 20.1%, up 450 basis points.GE Aerospace’s Balance Sheet & Cash FlowExiting the fourth quarter, GE Aerospace had cash, cash equivalents and restricted cash of $13.6 billion compared with $15.2 billion at the end of December 2023. The company’s long-term borrowings were $17.2 billion compared with $19.4 billion at the end of December 2023.For 2024, the adjusted free cash flow was $6.1 billion compared with $4.7 billion in the year-ago period.In 2024, GE rewarded its shareholders with a dividend payment of $1 billion. The company repurchased shares for $5.4 billion during the same period.GE’s OutlookFor 2025, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $7.8-$8.2 billion. Adjusted earnings are predicted to be in the range of $5.10-$5.45 per share. The free cash flow is anticipated to be in the band of $6.3-$6.8 billion, with the conversion rate projected to be more than 100%.GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teen digits, whereas operating profit is anticipated to be in the band of $7.6-$7.9 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid to high-single-digit range, whereas operating profit is anticipated to be $1.0-$1.3 billion.GE’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesAlaska Air Group ALK reported quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.47. This compares with earnings of $0.30 per share a year ago. Alaska Air posted revenues of $3.53 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.64%. This compares with year-ago revenues of $2.55 billion.United Airlines Holdings, Inc. UAL reported quarterly earnings per share of $3.26, which surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis.Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year due to upbeat air travel demand. This was driven by a 6.9% rise in passenger revenues (which accounted for 90.3% of the top line) to $13.3 billion.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks