TLDR
- Q4 results exceeded expectations with GE Aerospace posting $1.57 EPS compared to analyst estimates of $1.43, while revenue jumped 17.6% year-over-year to $11.90B
- Bernstein increased its price objective to $405 from $374, pointing to robust widebody services revenue and enhanced LEAP engine supply chain dynamics
- Shares were hovering around $346, approaching the 52-week peak of $348.48, after climbing 72% in the preceding 12 months
- The aerospace giant boosted its quarterly dividend payment from $0.36 to $0.47 per share, equating to a $1.88 annual yield
- Corporate insiders offloaded more than 37,000 shares valued at $11.4M over the last quarter, with institutional stakeholders controlling 74.77%
Shares of GE Aerospace advanced approximately 1.1% during Monday’s session, touching $346.17 at midday. This positioned the stock near its 52-week peak of $348.48.
The uptick follows an impressive performance period for the aerospace manufacturer. Throughout the past 12 months, GE has surged approximately 72%.
Bernstein SocGen Group elevated its price objective on GE shares from $374 to $405 on March 3, maintaining its Outperform designation. The analytical firm highlighted increased content value and pricing power on GEnx and GE90 widebody powerplants as primary catalysts.
Bernstein anticipates CFM56 maintenance visits will remain above the 2,300 threshold through at least 2030, fueled by persistent capacity limitations and robust market demand. This establishes a dependable foundation for ongoing services income.
Regarding LEAP powerplants, Bernstein forecasts that services revenue will match CFM56 levels by decade’s end. Margin improvement is anticipated through revised contract frameworks, including restructured long-term service agreements.
Supply chain dynamics for LEAP deliveries are showing signs of improvement. Airbus validated during its Q4 earnings discussion that CFM remains positioned to fulfill engine delivery obligations.
Bernstein’s 2026 EPS projection stands at $7.47, marginally exceeding the $7.40 consensus estimate. Looking ahead to 2028, the firm anticipates EPS of $10.39 compared to the consensus figure of $9.47.
Quarterly Results and Enhanced Dividend
GE Aerospace disclosed Q4 earnings of $1.57 per share, surpassing the $1.43 analyst projection by $0.14. Revenue reached $11.90 billion, exceeding forecasts of $11.27 billion and representing a 17.6% year-over-year increase.
The organization established FY 2026 outlook at $7.10–$7.40 EPS. Wall Street analysts presently anticipate full-year EPS of $5.40.
GE simultaneously announced a dividend increase from $0.36 to $0.47 per share on a quarterly basis. The distribution will be issued April 27, with March 9 as the record date. This establishes the annualized dividend at $1.88, generating approximately 0.5% yield.
Wall Street Perspectives and Trading Activity
The overall analyst sentiment remains largely bullish. GE currently carries one Strong Buy, 16 Buy, one Hold, and one Sell recommendation. The consensus price objective stands at $329.29, although Morgan Stanley launched coverage with an Overweight designation and a $425 target in February.
Conversely, BNP Paribas Exane reduced its target from $305 to $290 while maintaining an Underperform stance.
Insider transactions have trended toward liquidation. SVP Amy Gowder divested 4,000 shares at $305.73 on February 2, decreasing her stake by 19.48%. VP Robert Giglietti offloaded 3,035 shares at $305.51 on January 30, representing a 22.29% reduction. Collectively, insiders disposed of 37,398 shares worth approximately $11.45 million during the past 90 days.
Institutional stakeholders control 74.77% of outstanding shares. Vanguard maintains the largest position with over 92.7 million shares.
On the operational front, GE and Kratos Defense obtained a combined $12.4 million contract to develop the GEK1500 powerplant for the U.S. Air Force, designated for unmanned aerial platforms and collaborative combat aircraft.
GE additionally disclosed a potential reliability concern with a seal component on the powerplant utilized in Boeing’s 777X aircraft, which could necessitate redesign work and retrofitting during scheduled maintenance intervals.
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