Examining the Future: GE Aero's Earnings Outlook
GE Aero (NYSE:GE) will release its quarterly earnings report on Thursday, 2025-07-17. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate GE Aero to report an earnings per share (EPS) of $1.41.
The announcement from GE Aero is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.23, leading to a 2.38% increase in the share price the following trading session.
Here's a look at GE Aero's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.26 | 1.04 | 1.14 | 0.98 |
| EPS Actual | 1.49 | 1.32 | 1.15 | 1.20 |
| Price Change % | 2.0% | -2.0% | 3.0% | -6.0% |
Stock Performance
Shares of GE Aero were trading at $264.67 as of July 15. Over the last 52-week period, shares are up 66.44%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on GE Aero
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on GE Aero.
The consensus rating for GE Aero is Buy, derived from 6 analyst ratings. An average one-year price target of $243.17 implies a potential 8.12% downside.
Comparing Ratings Among Industry Peers
The analysis below examines the analyst ratings and average 1-year price targets of RTX, Lockheed Martin and General Dynamics, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for RTX, with an average 1-year price target of $145.17, suggesting a potential 45.15% downside.
- Analysts currently favor an Neutral trajectory for Lockheed Martin, with an average 1-year price target of $518.25, suggesting a potential 95.81% upside.
- Analysts currently favor an Buy trajectory for General Dynamics, with an average 1-year price target of $309.83, suggesting a potential 17.06% upside.
Overview of Peer Analysis
The peer analysis summary presents essential metrics for RTX, Lockheed Martin and General Dynamics, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GE Aerospace | Buy | 10.93% | $3.94B | 10.25% |
| RTX | Outperform | 5.19% | $4.12B | 2.52% |
| Lockheed Martin | Neutral | 4.47% | $2.32B | 26.31% |
| General Dynamics | Buy | 13.90% | $1.89B | 4.49% |
Key Takeaway:
GE Aerospace has the highest revenue growth among its peers. In terms of gross profit, it is at the bottom compared to others. The return on equity of GE Aerospace is higher than two of its peers but lower than one. Overall, GE Aerospace is positioned in the middle compared to its peers in this analysis.
About GE Aero
GE Aerospace is the global leader in designing, manufacturing, and servicing large aircraft engines, along with partner Safran in their CFM joint venture. With its massive global installed base of nearly 70,000 commercial and military engines, GE Aerospace earns most of its profits on recurring service revenue of that equipment, which operates for decades. GE Aerospace is the remaining core business of the company formed in 1892 with historical ties to American inventor Thomas Edison; that company became a storied conglomerate with peak revenue of $130 billion in 2000 until GE spun off its appliance, finance, healthcare, and wind and power businesses between 2016 and 2024.
GE Aero's Economic Impact: An Analysis
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: GE Aero's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 10.93%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: GE Aero's net margin excels beyond industry benchmarks, reaching 19.91%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): GE Aero's ROE stands out, surpassing industry averages. With an impressive ROE of 10.25%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.6%, the company showcases effective utilization of assets.
Debt Management: GE Aero's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.02, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for GE Aero visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
