GE Aerospace Lifts Full-Year Outlook After 49% Order Surge, But Shares Slip 4%
GE is trading near its 52-week low of $268.91 (10% above the low).
Summary
GE Aerospace raised full-year adjusted EPS guidance to $8.00-$8.10 from $7.65-$7.85, well above the $7.94 FactSet consensus, and lifted adjusted revenue growth to 19%-20% from high-teens. Q3 orders jumped 49% on commercial engines and services, and adjusted EPS of $2.25 beat the $2.01 estimate on revenue of $14.12 billion versus $12.88 billion expected. The catch: CFO Rahul Ghai said backlog conversion is stretching beyond the normal six-to-nine months as material shortages and inflation bite, and shares fell 4.1% to $298.43 after the open. This follows the September 8 agreement to buy Consolidated Precision Products for $11.75 billion, which management says will help lift deliveries and speed new engine introductions. The tension is clear — demand and pricing are strong, but the market is pricing execution risk on turning that $212 billion backlog into revenue.
At the time of this announcement, GE was trading at $296.96 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $308.1B. The 52-week trading range was $268.91 to $388.84. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.