General Electric Company’s (GE - Free Report) aviation unit, GE Aviation, recently received a contract from Aerion Supersonic to provide its electric power system to the latter. Financial terms of the contract have been kept under wraps.
Notably, Aerion Supersonic is a global leader in supersonic technology. It is working on AS2 supersonic business jet, which is likely to be ready for flight testing in 2024.
Details of the Deal
As noted, GE Aviation’s electric power system for AS2 supersonic business jet will include electrical power generation, conversion, distribution and energy storage.
The designing and initial integration planning for the electric power system will be carried out at General Electric’s Electrical Power Integration Centre. This facility is based in Cheltenham, U.K. Meanwhile, Ohio-based Electric Power Integrated Systems Center will be used for the ultimate integration and procurement of the electric power system.
This contract strengthens GE Aviation’s ties with Aerion. In 2018, GE Aviation received a contract to provide the company’s civil supersonic engine, Affinity, for AS2.
General Electric’s Aviation Unit
The company’s Aviation unit provides turboprop and jet engines along with components, and aftermarket services. Its offerings are primarily used in business, general, commercial and military aviation aircraft.
In third-quarter 2019, General Electric’s Aviation revenues grew 8.4% year over year to $8,109 million, while orders were down 4%. Organically, revenues expanded 10% on 2% growth in orders. Notably, third-quarter shipment of LEAP engines totaled 455 compared with the year-ago figure of 152.
For 2019, General Electric anticipates Aviation's organic sales to rise in a high-single digit.
It is worth mentioning here that General Electric, in June 2018, communicated a plan to transform itself into a high-tech industrial company focused on Aviation, Power and Renewable Energy. It will gradually exit all other businesses.
Zacks Rank, Share Price Performance and Earnings Estimates
General Electric currently has a market capitalization of $99 billion and a Zacks Rank #3 (Hold). This company’s share price has increased 47.6% so far in 2019 compared with the industry’s growth of 28.7%.
In the past 60 days, its earnings estimates for 2019 and 2020 have been revised. Currently, the Zacks Consensus Estimate for General Electric’s earnings is pegged at 61 cents for 2019 and 70 cents for 2020, suggesting growth of 3.4% and a decline of 2.8% from the respective 60-day-ago figures.
General Electric Company Price and Consensus
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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General Electric Company’s (GE - Free Report) aviation unit, GE Aviation, recently received a contract from Aerion Supersonic to provide its electric power system to the latter. Financial terms of the contract have been kept under wraps.
Notably, Aerion Supersonic is a global leader in supersonic technology. It is working on AS2 supersonic business jet, which is likely to be ready for flight testing in 2024.
Details of the Deal
As noted, GE Aviation’s electric power system for AS2 supersonic business jet will include electrical power generation, conversion, distribution and energy storage.
The designing and initial integration planning for the electric power system will be carried out at General Electric’s Electrical Power Integration Centre. This facility is based in Cheltenham, U.K. Meanwhile, Ohio-based Electric Power Integrated Systems Center will be used for the ultimate integration and procurement of the electric power system.
This contract strengthens GE Aviation’s ties with Aerion. In 2018, GE Aviation received a contract to provide the company’s civil supersonic engine, Affinity, for AS2.
General Electric’s Aviation Unit
The company’s Aviation unit provides turboprop and jet engines along with components, and aftermarket services. Its offerings are primarily used in business, general, commercial and military aviation aircraft.
In third-quarter 2019, General Electric’s Aviation revenues grew 8.4% year over year to $8,109 million, while orders were down 4%. Organically, revenues expanded 10% on 2% growth in orders. Notably, third-quarter shipment of LEAP engines totaled 455 compared with the year-ago figure of 152.
For 2019, General Electric anticipates Aviation's organic sales to rise in a high-single digit.
It is worth mentioning here that General Electric, in June 2018, communicated a plan to transform itself into a high-tech industrial company focused on Aviation, Power and Renewable Energy. It will gradually exit all other businesses.
Zacks Rank, Share Price Performance and Earnings Estimates
General Electric currently has a market capitalization of $99 billion and a Zacks Rank #3 (Hold). This company’s share price has increased 47.6% so far in 2019 compared with the industry’s growth of 28.7%.
In the past 60 days, its earnings estimates for 2019 and 2020 have been revised. Currently, the Zacks Consensus Estimate for General Electric’s earnings is pegged at 61 cents for 2019 and 70 cents for 2020, suggesting growth of 3.4% and a decline of 2.8% from the respective 60-day-ago figures.
General Electric Company Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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