GE Aerospace shares dip as Q3 revenue falls short of estimates

Investing.com — GE Aerospace reported mixed third-quarter results on Tuesday, with earnings just beating expectations but revenue falling short, sending shares down more than 3% in early trading.

The aerospace giant posted adjusted earnings per share of $1.15, edging past analyst estimates of $1.14. However, revenue of $8.94 billion missed the consensus forecast of $9.05 billion.

GE Aerospace saw strong demand in the quarter, with orders rising 28% YoY to $12.6 billion. The company highlighted robust growth in its services business, which drove a 25% increase in earnings.

“The GE Aerospace team delivered strong results, with demand driving orders up 28%. We grew earnings 25% and produced substantial free cash flow, both largely driven by services,” said CEO H. Lawrence Culp, Jr.

Despite the revenue miss, GE Aerospace raised its full-year earnings guidance, now expecting adjusted EPS of $4.20-$4.35, up from its previous outlook of $3.95-$4.20. The new range sits above the Wall Street consensus of $4.25.

The company also boosted its free cash flow forecast to $5.6-$5.8 billion, up from $5.3-$5.6 billion previously.

GE Aerospace noted it made “meaningful progress” on engine deliveries in Q3, improving over 20% sequentially while expanding aftermarket capacity. However, supply chain constraints remain an ongoing focus area for the company.

The stock’s modest decline suggests investors are weighing the revenue shortfall against the raised guidance and strong order growth.