Shares of GE Aerospace (GE) gained about 5% in pre-market trading after the company reported strong first-quarter results, exceeding market expectations. This American aircraft engine supplier’s performance was driven by robust demand for commercial engines and services.
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The company reported adjusted earnings per share (EPS) of $1.49, much higher than the forecasted $1.25. Also, the bottom line jumped 60% year-over-year. Similarly, revenue rose 11% to $9.94 billion and beat the analysts’ estimate of $9.14 billion. In addition, GE’s orders surged by 12% year-over-year to $12.3 billion in the first quarter.
Breaking Down GE’s Revenue Performance
It must be noted that GE’s Q1 results were aided by an impressive performance of the Commercial Engines & Services (CES) segment. The unit generated $7 billion in revenues, up 14% year-over-year. Within this segment, services revenue grew by 17%, with spare parts sales up 20%.
Also, the Defense & Propulsion Technologies (DPT) segment showed modest growth. Its revenue increased by 1% to $2.3 billion.
Overall, GE Aerospace’s robust revenues reflect strong demand across both commercial and defense sectors, supported by a growing backlog of over $140 billion.
GE Reaffirms 2025 Forecast
GE Aerospace has reaffirmed its 2025 outlook, despite headwinds like tariffs and supply chain issues. The company expects adjusted EPS to range between $5.10 and $5.45, up from last year’s $4.60. Also, adjusted revenue growth is projected in the low-double-digit percentage range, thanks to strong demand for commercial engines and services.
Segment-wise, the CES unit is likely to see sales growth in the mid-teens, with services revenue rising in the low-double-digits to mid-teens. At the same time, the DPT segment is expected to deliver revenue growth in the mid- to high-single-digit range, due to steady performance in defense.
Is GE a Good Buy Right Now?
Analysts remain bullish about GE stock, with a Strong Buy consensus rating based on 16 Buys. Over the past year, GE has increased by about 20%, and the average GE stock price target of $230.67 implies an upside potential of 29.34% from current levels.
These analyst ratings are likely to change following GE’s results today.
