Wells Fargo & Co has released research reports adjusting their earning expectations for GE Aviation this year, stating that the company may have higher profits than previously expected.
According to the Smart Finance App, Wells Fargo & Co has released research reports adjusting their profit expectations for GE Aviation (GE.US) this year, stating that the company may have higher profits than previously expected.
Wells Fargo & Co analyst Matthew Akers stated in a report, "We continue to believe that GE Aviation's 2024 performance guidance can be achieved, and we have raised our expectations by about $0.02 per share, as we assume that new engine deliveries will decrease losses."
Wells Fargo & Co stated that investors seem to be concerned about jet engine manufacturers, especially after Airbus (EADSY.US) lowered its aircraft delivery target from 800 to 770 this year. The bank stated that since most of the profit for engine manufacturers comes from parts and aftermarket maintenance markets, this somewhat cushions the impact of lower engine deliveries.
Although Wells Fargo & Co has raised its profit expectations for GE Aviation this year, the bank has lowered its estimate for the company's second quarter.
Wells Fargo & Co stated, "Due to a decrease in engine deliveries, we have lowered our sales expectations for GE Aviation's second quarter by about 5%. However, due to the decrease in loss deliveries, we have actually raised our expectations for earnings per share in 2024, and we expect that the company's aftermarket sales for commercial engine business will not be significantly affected."