GE Aerospace Set to Post Q4 Earnings: What Lies Ahead for the Stock? (Revised)

GE Aerospace GE is scheduled to report fourth-quarter 2024 results on Jan. 23, before market open.The Zacks Consensus Estimate for GE's fourth-quarter earnings has increased 6.3% in the past 90 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 15.6%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Let’s see how things have shaped up for GE Aerospace this earnings season.Factors Likely to Have Shaped GE’s Quarterly PerformanceThe growing installed base and the higher utilization of engine platforms across commercial and defense end markets are expected to have benefited GE Aerospace in the fourth quarter. Solid demand for LEAP, GEnx & GE9X engines and related services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have aided the Commercial Engines & Services business. The consensus mark for the Commercial Engines & Services business’ total sales is pegged at $7.3 billion, indicating a 6.1% rise on a sequential basis.The Defense & Propulsion Technologies business has been reaping the benefits from the growing popularity of the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector. Rising U.S. & international defense budgets, positive airline & airframer dynamics and robust demand for commercial air travel are anticipated to have boosted GE’s performance in the fourth quarter. The consensus mark for the Defense & Propulsion Technologies business’ total sales is pegged at $2.6 billion, indicating a 13.9% rise on a sequential basis.The company has also been making investments to expand and upgrade manufacturing facilities in the United States and overseas. These investments are likely to have enabled GE Aerospace to boost its operational capacities and cater to the increased demand from its commercial and defense customers. This, along with its focus on operational execution, robust backlog level and aim to generate healthy free cash flow, is likely to have bolstered the company’s performance.The company’s portfolio restructuring efforts involve divesting non-profitable businesses to unlock value for its shareholders. In April 2024, GE completed the spin-off of its Vernova business, finalizing its multi-year portfolio transformation. While the spin-off is likely to have impacted year-over-year top-line comparisons, it is also expected to have enhanced GE's operational focus on its core aerospace business and financial flexibility. This is anticipated to have positively impacted its margins and profitability in the fourth quarter.However, the company has been dealing with the adverse impacts of the high costs and operating expenses owing to certain projects and restructuring activities. Also, supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the aerospace and defense markets, are likely to have affected GE Aerospace’s delivery of finished products to its customers within the stipulated time.Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt GE's overseas business in the quarterAmid this, the Zacks Consensus Estimate for GE’s fourth-quarter total revenues is pegged at $9.5 billion, indicating a decline of 49% year over year. The consensus estimate for earnings is pegged at $1.02 per share, implying a decrease of 1% from the prior-year level.GE Aerospace Price and EPS Surprise GE Aerospace price-eps-surprise | GE Aerospace QuoteEarnings WhispersOur proven model predicts an earnings beat for GE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. Earnings ESP: GE has an Earnings ESP of +3.22% as the Most Accurate Estimate is pegged at $1.05 per share, which is higher than the Zacks Consensus Estimate of $1.02. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: GE currently carries a Zacks Rank of 3.Other Stocks to ConsiderHere are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.EnerSys ENS has an Earnings ESP of +15.67% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is slated to release third-quarter fiscal 2025 (ended December 2024) results on Feb. 5. EnerSys’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.7%.Dover Corporation DOV has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2024 results on Jan. 30.Dover’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.AptarGroup, Inc. ATR has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2024 results on Feb. 6.AptarGroup’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.1%.(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)   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 Dover Corporation (DOV): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Enersys (ENS): 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