Goldman Sachs analyst Noah Poponak expresses their view on GE Aerospace‘s GE third-quarter 2024 results.
The company reported adjusted revenue growth of 6% Y/Y to $8.943 billion and GAAP revenue of $9.84 billion. The analyst consensus was $9.022 billion.
GE still expects adjusted revenue growth in the high single digits. It now sees adjusted EPS of $4.20 – $4.35 (prior $3.95 – $4.20) vs. the $4.25 consensus.
The company now expects adjusted operating profit of $6.7 billion – $6.9 billion (prior $6.5 billion – $6.8 billion) and adjusted free cash flow of $5.6 billion – $5.8 billion (prior $5.3 billion – $5.6 billion).
The analyst writes that GE’s results are solid overall but mixed by segment. Market expectations were high, and segment EBIT fell short of consensus.
While commercial engines remain a key growth driver, the analyst says the defense segment underperformed due to lower revenue and margins.
Goldman Sachs rated the company ‘Buy’, with a price target of $201. The analyst expects EPS of $4.12 for FY24, $5.16 for FY25, and $6.30 for FY26.
Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ITA and TCW Transform Systems ETF NETZ.
Price Action: GE shares are down 8.69% at $177.36 at the last check Tuesday.
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