GE Stock (NYSE:GE)
As management predicted that demand for jet engines and maintenance services will drive revenue improvements for the next couple of years, General Electric’s (NYSE:GE) stock rose as much as 9.2% on Thursday, reaching a four-year high of $94.94.
Boeing and Airbus (OTCPK:EADSY) (OTCPK:EADSF), who are two of the major clients of GE Aerospace, are ordering more aircraft from manufacturers as a result of a recovery in air travel after the lifting of pandemic lockdowns. This has led to an increase in GE Aerospace’s order backlog.
The corporation anticipates an increase in sales between the low double digits and the middle teens through the year 2025, with a profit margin of around twenty percent. It also maintained its projection of adjusted earnings per share in the range of $1.60 to $2.00 for the year 2023 and its forecast for revenue growth in the high single digits.
The firm’s chairman and chief executive officer, Lawrence Culp, stated in prepared comments for the company’s investor day that “the future is bright for GE stock.” “We are operating from a stronger base and as a fundamentally simpler organization, and as a result, we are delivering enormous value both now and in the future.”
GE Aerospace and the other partners in its joint venture have an installed base of more than 26,000 fighter jet engines and about 41,000 commercial jet engines, both of which sustain the need for aftermarket services.
Since there is a need for more new aircraft on the market, airlines are looking for ways to extend the usage of their current fleets. This presents an opportunity for GE Aerospace to grow its services business. In 2022, services accounted for seventy percent of GE Aerospace’s total revenue.
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Author Shariq Khan 
