The Market Missed Something Important in GE Aerospace's Big News. Here's What You Need to Know.

Aerospace equipment suppliers like GE Aerospace (NYSE: GE) aren't always the easiest to evaluate. That much is apparent from GE's recent results and the consequent sell-off in the stock. While there were some negatives, the market may have missed a significant plus from management's commentary. Here it is, and here's why it matters.The good news comes from an extension in how long GE expects a peak of "shop visits" to last on its legacy airplane engines installed in airplanes already flying. To put that into plain English and explain why it matters so much, it's essential to understand how GE makes money.GE's management has expressed dissatisfaction with the business model of selling airplane engines. These engines are typically sold at a loss, and the real money is made in the aftermarket, which can span over 40 years of an engine's lifetime. Aftermarket services revenue is primarily generated through shop visits, whereby engines are brought in for comprehensive overhaul and maintenance. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool