GE Aerospace Stock Surges on Q4 Beat, $7B Buyback

GE Aerospace, the aviation-focused division of General Electric, has seen its stock price climb following a strong fourth-quarter earnings report and the announcement of a $7 billion stock buyback program. The company's robust performance and commitment to returning capital to shareholders have bolstered investor confidence in the stock.



GE Aerospace reported adjusted earnings per share (EPS) of $1.32 in the fourth quarter, surpassing analysts' estimates of $1.04. The company's revenue also beat expectations, coming in at $10.81 billion compared to the consensus estimate of $9.60 billion. This strong performance was driven by a 19% increase in commercial engines and services revenue and a 4% increase in defense and propulsion technologies revenue.



The company's order book also grew significantly, with total orders increasing by 46% year-over-year to $15.5 billion. This surge in orders indicates strong demand for GE Aerospace's products and services, which bodes well for the company's future growth prospects.

In addition to its strong earnings performance, GE Aerospace announced a $7 billion stock buyback program for 2025. This follows a $6 billion buyback in 2024 and demonstrates the company's commitment to returning capital to shareholders. The buyback program, along with a 30% increase in the company's dividend, is expected to enhance shareholder value and boost investor sentiment.



GE Aerospace's stock price has responded positively to these developments, surging in premarket trading on Thursday. The company's shares were up 8.04% at $203.51 at the last check, putting them on track to open around the highest prices seen since October 2007.

Looking ahead, GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 to $5.45 in 2025. The company also anticipates adjusted operating profit of $7.8 billion to $8.2 billion and adjusted free cash flow of $6.3 billion to $6.8 billion. These projections suggest that GE Aerospace is well-positioned for continued growth and success in the coming year.

In conclusion, GE Aerospace's strong Q4 performance, coupled with its commitment to returning capital to shareholders through a $7 billion stock buyback program, has driven the company's stock price higher. With a positive earnings outlook and strong growth prospects, GE Aerospace's stock appears to be an attractive investment opportunity for investors seeking exposure to the aviation sector.