GE Aerospace shares plunged despite the aircraft engine supplier’s third quarter financial performance exceeding expectations and it raising its full year earnings guidance.
For the quarter, GE Aerospace reported adjusted revenue of $9.84 billion, up 6% year-over-year and ahead of estimates of $9.02 billion.
However, commercial engines and service revenue of $7 billion missed estimates of $7.13 billion and defense and propulsion revenue of $2.24 billion was short of the $2.34 billion expected.
Earnings per share (EPS) of $1.15 were up 25% from the year-ago quarter and ahead of estimates of $1.13.
Total orders were up 28% at $12.6 billion.
“We grew earnings 25% and produced substantial free cash flow, both largely driven by services. Given the strength of our results and 4Q expectations, we're raising our earnings and cash guidance for the year,” GE Aerospace CEO Larry Culp commented.
“Our path forward is clear, and I am confident GE Aerospace is positioned to deliver a solid year in our first year as a standalone company.”
The company now expects adjusted EPS in the range of $4.20 to $4.35, up from its earlier expectation of $3.95 to $4.20.
Free cash flow is now seen in the range of $5.6 billion to $5.8 billion, an increase from prior guidance of $5.3 billion to $5.6 billion.
Shares of GE Aerospace pulled back 7.5% to about $180 at midday on Tuesday, still up almost 82% in the year to date.