GE Aerospace GE is scheduled to report first-quarter 2025 results on April 22, before market open.

The Zacks Consensus Estimate for its first-quarter earnings has decreased 2.3% in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 19%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s see how things have shaped up for GE Aerospace this earnings season.

Factors Likely to Have Shaped GE’s Quarterly Performance

The increasing installed base and the higher utilization of engine platforms across commercial and defense end markets are expected to have benefited GE Aerospace in the first quarter. Solid demand for LEAP, GEnx & GE9X engines and related services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have benefited the Commercial Engines & Services business.

The Defense & Propulsion Technologies business is anticipated to have performed well, backed by the growing popularity of the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector. Rising U.S. & international defense budgets, positive airline & airframer dynamics and robust demand for commercial air travel are anticipated to have boosted GE’s performance in the first quarter.

GE has been making investments to expand and upgrade manufacturing facilities in the United States and overseas. These investments are likely to have enabled the company to boost its operational capacities and cater to the increased demand from its commercial and defense customers. This, along with its focus on operational execution, robust backlog level and aim to generate healthy free cash flow, is likely to have bolstered its performance.

However, high costs and operating expenses owing to certain projects and restructuring activities are likely to have weighed on the company’s performance. Also, supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the aerospace and defense markets, are likely to have affected GE’s delivery of finished products to its customers within the stipulated time.

Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt GE's overseas business in the quarter

Amid this, the Zacks Consensus Estimate for GE’s first-quarter total revenues is pegged at $9 billion, indicating a decline of 41% year over year. The consensus estimate for earnings is pegged at $1.26 per share, implying a decrease of 53.7% from the prior-year level.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for GE 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, which is not the case here, as elaborated below.

Earnings ESP: GE has an Earnings ESP of -0.82% as the Most Accurate Estimate is pegged at $1.25 per share, which is lower than the Zacks Consensus Estimate of $1.26. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: GE currently carries a Zacks Rank of 2.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Woodward, Inc. WWD has an Earnings ESP of +3.95% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release second-quarter fiscal 2025 (ended March 2025) results on April 28. Woodward’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.9%.

RTX Corporation RTX has an Earnings ESP of +2.55% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2025 results on April 22.

RTX’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.9%.

Howmet Aerospace Inc. HWM has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2025 results on May 1.

Howmet’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.3%.

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GE Aerospace (GE) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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