:max_bytes(150000):strip_icc()/GettyImages-2151884197-f745edd5f7164af48177cc8b8268cb88.jpg "What You Need To Know Ahead of GE Aerospace’s Earnings")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2151884197-f745edd5f7164af48177cc8b8268cb88.jpg)
Key Takeaways
- GE Aerospace reports earnings before markets open Tuesday, in what will be its second report since General Electric completed its split into three separate companies earlier this year.
- Analysts expect GE Aerospace’s revenue to grow year-over-year despite some uncertainty in the airplane manufacturing market.
- Bank of America analysts said GE could be “strongly positioned” in the sector thanks to its variety of products and customers.
GE Aerospace (GE) reports second-quarter earnings before markets open Tuesday, in what will be the aerospace parts maker’s second earnings report since General Electric completed its split to three separate companies earlier this year.
GE Aerospace is expected to report $8.5 billion in revenue, up from last year’s $7.9 billion, according to estimates compiled by Visible Alpha. In its first quarter as a standalone company, GE Aerospace reported revenue of $8.1 billion, and raised its profit expectations for the full fiscal year, citing strong demand for its commercial and military airplane engines.
GE Aerospace also said in its first-quarter report that it will begin offering more detailed breakdowns of its earnings starting in the second quarter, providing investors more insight into the performance of its two segments, “Commercial Engines & Services” and “Defense & Propulsion Technologies.”
GE Aerospace ‘Strongly Positioned’ To Benefit From Industry Growth
Despite some uncertainty in the aerospace industry with Boeing (BA) experiencing safety issues and production slowdowns and Airbus (AIR) recently lowering its full-year guidance, Bank of America analysts wrote Wednesday that stocks of parts manufacturers like GE Aerospace are expected to weather the storm.
“We do not expect uncertainty to put significant downside risk on the commercial [original equipment manufacturers] in the quarter, as recent headlines have largely been priced into the stocks,” the analysts wrote.
Reiterating a “buy” rating with a price target of $180, the analysts wrote that GE could be “strongly positioned” to benefit from industry growth thanks to its “unique portfolio,” with revenue streams across aircraft manufacturers and aircraft types.
The two other former divisions of General Electric, GE Vernova (GEV) and GE HealthCare (GEHC), are set to report their earnings on July 24 and July 31, respectively.
GE Aerospace shares have gained close to 17% since the company completed its split from GE Vernova, at $159.13 as of Friday’s close.