General Electric Reports Third Quarter 2024 Financial Results
General Electric Company (GE), now operating as GE Aerospace, has reported its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change (%) | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $9.8 billion | $9.3 billion | +5.4% | $9.02 billion |
| Earnings Per Share (EPS) | $1.56 | Not provided | Not provided | $1.14 |
| Adjusted Earnings Per Share* | $1.15 | Not provided | Not provided | Not provided |
*Adjusted EPS excludes certain non-operating costs.
GE reported third-quarter revenues of $9.8 billion, marking a 5.4% increase from the same period last year, exceeding consensus estimates of $9.02 billion. The earnings per share for the quarter were $1.56, also surpassing analysts' expectations of $1.14. The increase in revenue was primarily driven by strong performance in the Commercial Engines & Services segment and favorable pricing.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | YoY Change (%) |
|---|---|---|
| Commercial Engines & Services | $0.5 billion increase | +8% |
| Defense & Propulsion Technologies | Up 2% | Not provided |
In the Commercial Engines & Services segment, revenues rose by 8%, thanks to higher spare parts volume and improved pricing. Meanwhile, the Defense & Propulsion Technologies segment saw a revenue increase of 2%, despite a decrease in profits due to inflation in the supply chain and engine mix.
Key Developments and Operational Highlights
- Completion of GE Vernova separation into an independent company.
- Increase in remaining performance obligation by $12.1 billion or 8% from December 31, 2023.
- Delivered two T901-GE-900 engines for U.S. Army upgrades and awarded a $1.1 billion contract for T700 turbine engines.
Management Commentary
GE's management highlighted the robust demand in commercial air travel and continued investments in manufacturing and supply chain resources to increase production capacity. The company also emphasized strategic focus on innovation and development of pioneering technologies through the Revolutionary Innovation for Sustainable Engines (RISE) program.
Capital Return Plans
GE authorized the repurchase of up to $15 billion of its common stock, replacing the previous $3 billion authorization. As of September 30, 2024, the company repurchased 19.6 million shares for $3.3 billion.
Forward Guidance and Stock Performance
Unfortunately, details on forward guidance were not provided in the report. Following the earnings release, GE's stock saw a decrease of 3.27%.
In summary, General Electric showcased solid performance in the third quarter of 2024, driven by growth in their key aerospace segments and strategic organizational changes following the completion of the GE Vernova spin-off.
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