💼 GE Aerospace: strong results, dividend growth and share buyback ✈️
Shares of General Electric $GE have been experiencing strong growth in recent days after the company reported Q4 2024 results that beat analyst expectations and confirmed its strong market position.
Over the past year, the stock price has risen more than 90%!
Company General Electric is a global industrial conglomerate that specializes in manufacturing technologies for energy, aerospace, healthcare and renewable energy. Division GE Aerospace develops and manufactures aircraft engines, defense systems and provides related services to commercial and military customers.
🚀 Key Results:
GAAP revenue: $10.812 billion (analysts expected $9.604 billion).
Revenue growth from commercial engines and services: +19% ($7.65 billion).
Defense Technology growth: +4% ($2.52 billion).
Order volume: +46% year-on-year ($15.5 billion).
Earnings per share (EPS) increased by 103 % y/y to $1.32, well ahead of expectations (USD 1.04). Adjusted operating margin increased 450 bps to 20,1 %, indicating effective cost management.
📈 Strong outlook for 2025:
Revenue growth: low double-digit growth is expected.
Adjusted EPS: $5.10-5.45 (Consensus is $5.22).
Operating profit: USD 7.8-8.2 billion.
Free cash flow: USD 6.3-6.8 billion.
💰 Shareholders have a lot to look forward to:
The company repurchased $6 billion worth of shares in 2024 and plans another $7 billion buyback in 2025.
The dividend will increase by 30 %.
🎙️ Words from CEO H. Lawrence Culp, Jr.:
"Our focus on efficiency through the FLIGHT DECK model will enable us to accelerate production and deliver greater value to our customers. The year 2025 will deliver double-digit sales and earnings growth and more than 100% free cash flow conversion."
Company GE Aerospace demonstrates outstanding performance in both commercial engines and defense technologies. Its growth plans, dividend increases, and extensive share buybacks point to an exciting opportunity. 🛠️
What do you think of this company?
The company has a broad portfolio and expectations for 2025 are positive, but it is hard to say whether the company will grow at this pace this year.
I would like to buy this stock for my portfolio, but after 90% growth over the past year, I don't feel like buying it now.
Great company and those buybacks will certainly make investors happy. I'm honestly surprised the stock has risen so much in the last year.
GE aerospace and it's going into space. Whoever got it right in the covid wins.