GE Aerospace Q2 Earnings Preview: Revenue Expected to Grow 15.8%

GE Aerospace is set to announce Q2 earnings, with analysts expecting a 15.8% YoY revenue growth to $9.52 billion and adjusted earnings of $1.43 per share. The company missed revenue expectations last quarter, but beat EBITDA estimates. Heading into earnings, analysts have grown increasingly bearish with 8 downward revisions over the last 30 days. The stock is up 11.8% in the last month and has an average analyst price target of $259.95.

Title: GE Aerospace: Q2 Earnings Preview and Analyst Sentiment

GE Aerospace (GE) is poised to release its second-quarter 2025 earnings results on July 17, before the market opens. Analysts expect the company to report a 15.8% year-over-year (YoY) revenue growth to $9.52 billion, with adjusted earnings of $1.43 per share. This announcement follows a mixed quarter, where GE missed revenue expectations but beat EBITDA estimates in the previous period.

In recent weeks, analyst sentiment has turned increasingly bearish. Over the last 30 days, there have been 8 downward revisions to earnings estimates. Despite this, the stock has surged 11.8% in the last month, reaching an average analyst price target of $259.95. This upward movement is driven by robust demand for commercial engines, propulsion, and additive technologies, as well as strong performance in both commercial and defense markets.

GE's earnings surprise history is impressive, with the company consistently outperforming the Zacks Consensus Estimate in the past four quarters, averaging an 18% surprise [1]. The company's Zacks Rank of 1 (Strong Buy) and Earnings ESP of +4.94% indicate a high likelihood of an earnings beat [1]. However, high costs and operating expenses from certain projects and restructuring activities are expected to weigh on the company's performance [1].

The company's portfolio reshaping actions, including the April 2024 spin-off of its Vernova business, are anticipated to unlock value and improve margins in the long term. Additionally, investments in expanding and upgrading manufacturing facilities are likely to boost operational capacities and cater to increased demand [1].

Supply-chain challenges, such as raw material availability and labor shortages, pose potential risks to GE's performance. The company continues to face sustained pressure from these issues, which could impact its margins and profitability [1].

Despite these challenges, GE's strong market position and focus on operational execution are likely to support its earnings. The company's portfolio diversification and growth prospects in the aerospace and defense sectors are expected to drive its performance. As investors prepare for the earnings announcement, the focus will be on how GE navigates these challenges and leverages its strengths.

References:
[1] https://finance.yahoo.com/news/ge-aerospace-stock-portfolio-pre-134800105.html