GE Aerospace shares have pulled back from their highs last month.
Credit: Christopher Pike / Bloomberg / Getty Images
  • GE Aerospace’s quarterly earnings report is due to be released Tuesday morning, with the stock seen making big moves in the days that follow.

  • The aircraft parts maker is projected to report rising revenue and profits for the first quarter.

GE Aerospace (GE) is scheduled to report earnings ahead of the opening bell on Tuesday, with the stock expected to make a big swing following the results.

Based on recent options pricing, GE Aerospace stock is seen moving up to 5.5% by the end of the week. A move of that size from Friday’s close could push shares up to about $321, closer to last month’s record highs. The low end of that range would drag them below $288.

The jet engine manufacturer’s stock has pulled back from its record highs recently, during a broader sell-off sparked by the Iran war, and despite some gains during last week’s rally amid signs of progress toward and end to the war, they’ve yet to make a full recovery.

Investors could look to GE Aerospace’s earnings for insights into demand for airplane engines, amid some concerns that rising fuel and ticket prices could hamper travel demand.

In January, GE Aerospace posted fourth-quarter results and an outlook that topped Wall Street estimates, though its stock lost ground on the day of the report. Last year was GE Aerospace’s first full year as a standalone company, after General Electric completed its split into three companies in April 2024.

GE Aerospace is projected to report a 15% year-over-year increase in first-quarter revenue to $11.45 billion. Adjusted earnings per share are seen rising 11 cents to $1.60, according to estimates compiled by Visible Alpha.

Wall Street analysts are overwhelmingly bullish on GE Aerospace. All six analysts with current ratings tracked by Visible Alpha have recommended buying the stock. Their average price target around $358 would imply an 18% rise from Friday’s close to a new record.

Read the original article on Investopedia



Source link