GE Aerospace: Stock Surges After Strong Earnings; Key Price Levels to Watch

GE Aerospace (GE) shares surged nearly 10% on Thursday morning, leading the S&P 500 gainers, following the company's release of strong fourth-quarter results and an optimistic outlook for 2025. The jet engine and defense manufacturer reported adjusted earnings of $1.32 per share, up 103% from last year, on a 16% revenue increase to $9.9 billion. These figures easily beat FactSet forecasts for earnings of $1.04 per share on $9.49 billion in sales. The earnings gain was the best in six quarters, while the revenue increase was the best in years.



Total orders during the quarter jumped 46% to $15.5 billion, with the commercial engines & services (CES) segment seeing a 50% increase in orders to $12.95 billion and a 19% revenue growth to $7.65 billion. The defense and propulsion technologies (DPT) segment saw a 22% order increase to $2.84 billion with 4% revenue growth to $2.5 billion.

GE Aerospace guided 2025 earnings to $5.10-$5.45 per share adjusted, with the midpoint just above FactSet estimates for $5.23 per share. The company expects low double-digit revenue growth, while FactSet predicts about 11% sales growth to $38.99 billion. GE Aerospace guided CES revenue to grow in the mid-teens, driven by a low-double-digit to mid-teen boost in services and equipment growth in the high-teens. DPT revenue growth is seen climbing in the mid- to high-single-digit range.

GE Aerospace also announced plans to hike its dividend by 30% and initiate a $7 billion share buyback program. The company's strong performance and optimistic outlook have analysts bullish on the stock. Cowen analyst Cai von Rumohr raised his price target on GE Aerospace to $250 from $225, citing the company's strong earnings and positive outlook.

Investors should watch the following key price levels as GE Aerospace's stock continues to surge:

1. 204.54: This level represents the top of the buy zone, which the stock cleared on Thursday morning. A sustained move above this level could indicate further upside potential for the stock.
2. 210.00: This round number level could act as a resistance point for the stock, but a break above it could signal a continuation of the uptrend.
3. 220.00: This level represents a significant psychological barrier and could be a challenging hurdle for the stock to overcome. However, a break above this level could indicate a strong uptrend and potentially open the door for further gains.

In conclusion, GE Aerospace's strong earnings report and optimistic outlook have driven the stock to new highs, and investors should watch key price levels to capitalize on potential opportunities in the coming months. As the company continues to execute on its strategic initiatives and deliver robust growth, the stock may continue to surge, making it an attractive investment option for those looking to gain exposure to the aerospace and defense sector.