General Aerospace reports above-consensus Q4 earnings and revenue; stock jumps

Investing.com -- General Aerospace saw its shares surge 6% in premarket trading Thursday after the company reported Q4 earnings and revenue above analyst expectations.

The aircraft engine supplier reported Q4 earnings per share (EPS) of $1.32, topping the consensus estimates of $1.05.

Revenue came in at $9.88 billion, surpassing the $9.57 billion projected by analysts.

Commercial Engines&Services generated $7.65 billion in revenue, outperforming expectations of $7.35 billion.

Defense&Propulsion Technologies contributed $2.52 billion, also slightly above the $2.49 billion estimate.

GE Aerospace reported adjusted free cash flow (FCF) of $1.28 billion for the quarter, up 21% year-over-year.

“GE Aerospace delivered a strong finish to 2024 given robust demand for our services and products with fourth quarter orders up 46%, EPS more than doubling, and free cash flow increasing over 20%,” said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr.

"Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion. Guided by FLIGHT DECK, our proprietary lean operating model, I'm confident in our ability to accelerate output and deliver for our customers."

The company forecasts full-year EPS between $5.10 and $5.45, compared to the consensus estimate of $5.26.

Adjusted free cash flow is expected to range from $6.3 billion to $6.8 billion, surpassing the analyst estimate of $6.29 billion. Adjusted operating profit is projected between $7.8 billion and $8.2 billion.

The company also announced plans to return additional value to shareholders. It will increase share buybacks to $7 billion in 2025 and raise its dividend by 30%.