GE Aerospace's Q3 Results Solid, But Segments Tell Different Stories: Analyst

GE Aerospace's Q3 Results Solid, But Segments Tell Different Stories: Analyst
GE Aerospace's Q3 Results Solid, But Segments Tell Different Stories: Analyst

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Goldman Sachs analyst Noah Poponak expresses their view on GE Aerospace‘s (NYSE:GE) third-quarter 2024 results.

The company reported adjusted revenue growth of 6% Y/Y to $8.943 billion and GAAP revenue of $9.84 billion. The analyst consensus was $9.022 billion.

GE still expects adjusted revenue growth in the high single digits. It now sees adjusted EPS of $4.20 – $4.35 (prior $3.95 – $4.20) vs. the $4.25 consensus.

The company now expects adjusted operating profit of $6.7 billion – $6.9 billion (prior $6.5 billion – $6.8 billion) and adjusted free cash flow of $5.6 billion – $5.8 billion (prior $5.3 billion – $5.6 billion).

The analyst writes that GE’s results are solid overall but mixed by segment. Market expectations were high, and segment EBIT fell short of consensus.

While commercial engines remain a key growth driver, the analyst says the defense segment underperformed due to lower revenue and margins.

Goldman Sachs rated the company ‘Buy’, with a price target of $201. The analyst expects EPS of $4.12 for FY24, $5.16 for FY25, and $6.30 for FY26.

Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and TCW Transform Systems ETF (NYSE:NETZ).

Price Action: GE shares are down 8.69% at $177.36 at the last check Tuesday.

Photo by Ground Picture on Shutterstock

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Latest Ratings for GE

Date

Firm

Action

From

To

Mar 2022

RBC Capital

Maintains

Outperform

Mar 2022

Credit Suisse

Maintains

Outperform

Feb 2022

Morgan Stanley

Maintains

Overweight

View More Analyst Ratings for GE

View the Latest Analyst Ratings

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This article GE Aerospace's Q3 Results Solid, But Segments Tell Different Stories: Analyst originally appeared on Benzinga.com

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