GE Aerospace, Tuesday's IBD Stock Of The Day, delivered strong earnings and robust orders in its first report as a pure-play aerospace company. GE stock popped, offering an early buying opportunity.
GE Aerospace emerged in April, along with GE Vernova, completing the former General Electric's long dismantling. The new company, a maker of jet engines and related parts, kept the GE stock ticker. GE Vernova business houses GE's former energy unit. GE Healthcare was spun off in January 2023.
GE Aerospace Earnings
GE Aerospace earnings jumped 62% vs a year earlier to $1.20 a share, beating views for 99 cents. Revenue rose nearly 4% to $9.09 billion, topping forecasts for $8.44 billion.
Orders in GE's commercial engines and services business surged almost 38% to $9.15 billion amid booming demand for spare parts.
Ongoing Boeing woes mean airlines are hanging on to older jets. That has boosted GE Aerospace's aftermarket business.
Free cash flow swelled almost 17% to $1.1 billion, beating views.
GE Aerospace raised full-year EPS and cash flow guidance.
GE Stock Soaring
Shares leapt 5.7% to 172 in Tuesday's stock market action after retaking the 50-day line on Monday. Shares hit a new high of 177.20. Volume was very strong.
GE stock broke out past a 170.80 buy point from an 11-week flat base.
Shortly after Tuesday's open, GE broke a downward-sloping trendline and cleared the July 10 short-term high of 165.99.
The relative strength line is off highs, but turned upin recent days. The RS line, which tracks a stock's performance vs. the S&P 500 index, had been in a strong uptrend for several months.
The flat base formed after a powerful run from an early November 2023 breakout.
GE Aerospace stock was added to SwingTrader on Tuesday.
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