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The Zacks Consensus Estimate for earnings has increased 7.8% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 54.1%.
Let’s see how things are shaping up for GE Aerospace this earnings season.
Factors to Note
GE Aerospace is expected to have benefited from its focus on innovation, digital capabilities, and strength across its commercial and defense end markets in the first quarter. The company’s solid product offerings, focus on operational execution and aim to generate healthy free cash flow are likely to have positively impacted its operations.
Higher orders for LEAP, GEnx & GE9X engines, critical aircraft systems and aftermarket services in the defense sector are expected to have boosted GE Aerospace’s top-line performance in the first quarter. Also, solid demand for commercial engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have aided its results. GE’s aerospace business is likely to have benefited from heightened geopolitical tensions, strong U.S. defense budget and positive airline & airframer dynamics during the quarter.
Investments to expand and upgrade manufacturing facilities in the United States and overseas are likely to have been enabling GE Aerospace boost its production capacities, and provide better services to its commercial and defense customers. This along with solid backlog level and an increase in product deliveries, backed by its lean transformation initiatives, are likely to have been tailwinds.
However, escalating operating costs and expenses, related to certain projects and restructuring activities, are likely to have impacted GE’s margin performance in the first quarter. Despite improving, supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the defense market, is expected to have weighed on GE Aerospace’s operations.
Given the company’s substantial international operations, foreign currency headwinds might also have marred its margins and profitability.
The Zacks Consensus Estimate for GE’s first-quarter total revenues is pegged at $15,703 million, indicating growth of 8.4% from a year ago. The consensus estimate for earnings is pegged at 69 cents per share, suggesting an increase of 155.6% from the prior-year levels.
Our proven model doesn’t conclusively predict an earnings beat for GE Aerospace this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.
Earnings ESP: GE Aerospace has an Earnings ESP of +4.71%, as the Most Accurate Estimate is pegged at 73 cents, higher than the Zacks Consensus Estimate of 69 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GE Aerospace carries a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release.
CSL delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has risen 19.5% in the past three months.
Honeywell International Inc. (HON - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. It is slated to release first-quarter results on Apr 25.
Honeywell delivered a trailing four-quarter earnings surprise of 2.7%, on average. The stock has fallen 5.2% in the past three months.
ITT Inc. (ITT - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3. It is slated to release first-quarter results on May 2.
ITT delivered a trailing four-quarter earnings surprise of 7%, on average. The stock has risen 4.9% in the past three months.
Image: Bigstock
GE Aerospace (GE) Gears Up for Q1 Earnings: What to Expect
GE Aerospace (GE - Free Report) is scheduled to report first-quarter 2024 results on Apr 23, before market open.
The Zacks Consensus Estimate for earnings has increased 7.8% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 54.1%.
Let’s see how things are shaping up for GE Aerospace this earnings season.
Factors to Note
GE Aerospace is expected to have benefited from its focus on innovation, digital capabilities, and strength across its commercial and defense end markets in the first quarter. The company’s solid product offerings, focus on operational execution and aim to generate healthy free cash flow are likely to have positively impacted its operations.
Higher orders for LEAP, GEnx & GE9X engines, critical aircraft systems and aftermarket services in the defense sector are expected to have boosted GE Aerospace’s top-line performance in the first quarter. Also, solid demand for commercial engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have aided its results. GE’s aerospace business is likely to have benefited from heightened geopolitical tensions, strong U.S. defense budget and positive airline & airframer dynamics during the quarter.
Investments to expand and upgrade manufacturing facilities in the United States and overseas are likely to have been enabling GE Aerospace boost its production capacities, and provide better services to its commercial and defense customers. This along with solid backlog level and an increase in product deliveries, backed by its lean transformation initiatives, are likely to have been tailwinds.
However, escalating operating costs and expenses, related to certain projects and restructuring activities, are likely to have impacted GE’s margin performance in the first quarter. Despite improving, supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the defense market, is expected to have weighed on GE Aerospace’s operations.
Given the company’s substantial international operations, foreign currency headwinds might also have marred its margins and profitability.
The Zacks Consensus Estimate for GE’s first-quarter total revenues is pegged at $15,703 million, indicating growth of 8.4% from a year ago. The consensus estimate for earnings is pegged at 69 cents per share, suggesting an increase of 155.6% from the prior-year levels.
GE Aerospace Price and EPS Surprise
GE Aerospace price-eps-surprise | GE Aerospace Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for GE Aerospace this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.
Earnings ESP: GE Aerospace has an Earnings ESP of +4.71%, as the Most Accurate Estimate is pegged at 73 cents, higher than the Zacks Consensus Estimate of 69 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GE Aerospace carries a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release.
Carlisle Companies Incorporated (CSL - Free Report) has an Earnings ESP of +3.06% and carries a Zacks Rank #2. It is slated to release first-quarter results on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
CSL delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has risen 19.5% in the past three months.
Honeywell International Inc. (HON - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. It is slated to release first-quarter results on Apr 25.
Honeywell delivered a trailing four-quarter earnings surprise of 2.7%, on average. The stock has fallen 5.2% in the past three months.
ITT Inc. (ITT - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3. It is slated to release first-quarter results on May 2.
ITT delivered a trailing four-quarter earnings surprise of 7%, on average. The stock has risen 4.9% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.