GE stock takes off after third-quarter earnings beat – Magic Post

GE stock takes off after third-quarter earnings beat

 – Magic Post

GE Aerospace Today

General Electric Aviation stock logo
General ElectricGE's 90-day performance

General Electric Aerospace

$304.74 +2.06 (+0.68%)

As of 01:52 PM ET

52 week range
$159.36

$316.53

Dividend yield
0.47%

P/E ratio
42.39

Price target
$276.31

General Electric Aerospace New York Stock Exchange: GE It could rise through the end of the year because this market is rising thanks to a perfect storm of results, operational quality, demand and market sentiment.

The bottom line for investors is that the chart for this high-quality aerospace manufacturer is bullish as is, reflecting the market exiting consolidation to the upside.

Consolidation is the operational factor in late October, which is in line with that Bull flag patternA signal of continuity and potential for a rally of $50 or more by the end of the year.

GE Aerospace stock chart

GE Aerospace excels and raises the guidance bar again – well above previous goals

GE Aerospace had a strong quarter driven by CEO Larry Culp’s turnaround and demand from commercial and defense customers. The company reported total revenue of $12.2 billion and adjusted revenue of $11.3 billion for gains of 24% and 26%, respectively, beating the MarketBeat-reported consensus for adjusted revenue by more than 850 basis points.

Both sectors led in strength, with commercial engines and services growing 27% and defense propulsion technology growing 26%.

Margin news is another area of ​​strength. The company has improved operational quality at many levels, resulting in strong margins, cash flow and free cash flow conversion. The adjusted profit margin was flat compared to the previous year, resulting in profits rising by 26% in line with revenue growth.

However, cash flow and free cash flow improved by 34% and 30%, strengthening the company’s financial position and capital return outlook. Free cash flow approached $2.5 billion during the quarter.

Guidance is another factor driving this market. The company issued strong guidance for the year, and expects to repeat the strengths of the third quarter in the fourth quarter. This is the second guidance increase this year and may still be a cautious number.

The company expects a high-teens pace of revenue growth, compared to consensus of 15.75%, and adjusted EPS of $6.00 is on the low end, $0.08 above the consensus figure.

GE Aerospace’s return on capital helps keep the market interested

GE Aerospace stock forecast today

12-month stock price forecast:
$276.31
Moderate purchase
Based on 17 analyst ratings
Current price $307.78
High expectations $374.00
Average expectations $276.31
Low expectations $38.00

GE Aerospace stock forecast details

GE’s return on capital is strong, helping to keep its stock price higher in 2025. The dividend isn’t huge — a nominal amount is less than 25% of profits, yielding just 0.5% — but it’s sustainable, Buybacks make the difference.

The company has issued aggressive repurchase authorization for the year, reducing its count by 2.5% on average during the quarter, and is likely to continue at a strong pace in the fourth quarter and subsequent fiscal year.

Both analysts and institutional groups are bullish on this push. The data reveals strong coverage, with 17 analysts rating it a Moderate Buy, while institutions have been buying in the back half of the year.

The institutional group sold in the first quarter but returned to buying in the second quarter, picking up the pace in the third quarter, and maintaining it into the first weeks of October as analysts raised sentiment ratings and price targets.

Analyst trends provide support and motivation, with consensus up 40% year over year and 10% in the 30 days leading up to the Q3 release, forecasting a move to $375 at the upper end of the range.

GE Aerospace is well positioned for long-term growth

The outlook for commercial and defense activities puts GE Aerospace in a good position Sustainable and long-term growth. While defense orders declined this quarter, they are expected to rebound and remain healthy over time, driven by defense spending expectations.

On the other hand, commercial orders grew as airlines globally moved towards fleet management and growth to support travel demand. Air travel increased in 2025 and is expected to grow again in 2026, supported by business and travel, which is good for GE Aerospace’s money-making services division.

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