GE's Aviation Business Drives Profit Beat and Raises 2023 Forecast

GE stock surged by 7% after the company reported a quarterly profit beat and raised its guidance, attributing the success to the rapid growth of its aerospace business. GE Aerospace has experienced robust demand and solid execution, particularly in commercial engines and services. The company now expects adjusted earnings of $2.55 to $2.65 per share in 2023, up from the previous projection of no more than $2.30. Despite supply chain challenges, GE's commercial engine deliveries have increased by 30% year-to-date. CEO Larry Culp also highlighted the growth potential beyond the commercial category, including a deal with the US Army for test engines. GE's results reflect the success of its five-year-turnaround plan, which involved cost-cutting measures and divestment of businesses. The spin-off of GE Vernova, its renewable energy and power unit, is expected to occur in Q2 2024.