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General Electric Co.'s stock rose Tuesday after the company reported lower-than-expected profit for the current quarter, despite a better-than-expected fourth-quarter profit on strong demand for parts and services from its jet engine business. It fell as a result.
The Boston, Massachusetts-based company expects adjusted earnings to range from 60 cents to 65 cents a share for the quarter ending in March, while analysts surveyed by LSEG expected 72 cents a share. was.
General Electric shares fell about 4% in premarket trading.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| G.E. | General Electric Co., Ltd. | 131.23 | +1.42 | +1.09% |
GE's aviation business is riding a surge in demand for aftermarket services as a strong rebound in travel demand and a shortage of new jets prompt airlines to fly their planes for longer periods of time.
The company said its aerospace business, which makes engines for Boeing and Airbus jets, is expected to generate adjusted operating income of $6 billion to $6.5 billion in 2024 and free cash flow of more than $5 billion.
Boeing's 737 MAX 9 aircraft: Here's what you need to know
In addition to grounding Boeing Co.'s 737 MAX 9 aircraft for safety inspections after a cabin panel fell off during an Alaska Airlines flight this month, rival RTX's Pratt & Whitney Geared Due to problems with turbofan (GTF) engines, aftermarket demand is expected to remain high.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 214.93 | -0.09 | -0.04% |
“The recent Alaska Airlines incident has given rise to a resurgence in the civil aerospace aftermarket as demand remains strong and pricing power remains strong,” JPMorgan analyst Seth Seifman said in a note last week. “It has become the safest earning segment in the sector.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| alk | Alaska Airlines Group Co., Ltd. | 34.83 | -0.01 | -0.03% |
CFM International, a joint venture between GE and France's Safran SA, is an engine supplier for Boeing's 737 MAX jetliner and competes with RTX's Pratt & Whitney to power Airbus' 320neo jets.
After completing the separation of its healthcare business, GE announced on Tuesday that its energy business, including renewable energy, will be spun off into a separate company in early April.
Details of the spin-off of the general electrical set healthcare division
As a result, the company announced separate full-year forecasts for its energy business, including renewable energy and aerospace.
GE said its portfolio of energy businesses, known as GE Vernova, is estimated to generate revenue of $34 billion to $35 billion and free cash flow of $700 million to $1.1 billion in 2024.
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GE's adjusted earnings for the December quarter were $1.03 per share, beating analysts' expectations of 91 cents per share. Total revenue increased 15% to $19.42 billion.
