GE Aerospace (GE) fell 7% Tuesday morning as revenue in its commercial engines and services division fell short of analysts’ expectations, even though its overall revenue and profit beat estimates.

The engine and aerospace parts manufacturer posted $9.84 billion in total revenue, while analysts polled by Visible Alpha had a consensus estimate of $9.55 billion. Net income was $1.89 billion, or $1.56 per share, compared with the projected $1.28 billion and $1.19.

However, GE Aerospace’s commercial engines and services revenue came in at $7.00 billion, below the $7.13 billion expectation. Revenue in the smaller defense and propulsion segment of $2.24 billion also missed estimates of $2.34 billion.

The company lifted its profit projections for full-year 2024, guiding adjusted earnings per share (EPS) to a range of $4.20 to $4.35, up from $3.95 to $4.20 previously.

“The GE Aerospace team delivered strong results, with demand driving orders up 28%,” Chief Executive Officer (CEO) Larry Culp said. “We grew earnings 25% and produced substantial free cash flow, both largely driven by services. Given the strength of our results and 4Q expectations, we’re raising our earnings and cash guidance for the year.”

Impact of the Boeing Machinists Union Strike

In the weeks leading up to GE Aerospace’s report, Bernstein analysts said the company faced a “key question”—the impact the Boeing (BA) machinists union strike would have on its operations. Slower production of Boeing planes would mean poorer engine sales, but would also improve the maintenance aftermarket for its existing engines.

GE Aerospace didn’t mention any impacts of the five-week Boeing strike in its earnings release, which could end soon after the sides came to a tentative agreement over the weekend that the union’s members are set to vote on Wednesday.

Analysts are the most bullish on GE Aerospace stock of the former General Electric segments, with all eight of the analysts tracked by Visible Alpha maintaining a “buy” rating, compared to 11 of 13 for GE Vernova and six of 11 for GE HealthCare (GEHC). GE Aerospace also has a larger projected gain, with its average target price about 9% above its current levels, compared to just over 3% for GE Vernova and GE HealthCare.

Despite today’s decline, GE Aerospace shares still are up about 30% since the early April split from GE Vernova (GEV).

UPDATE—This story has been updated with the latest share price and information about segment revenue.

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