The Market Is Wrong to Sell Off GE Aerospace Stock After the Latest Update: Here's Why
The market aggressively sold off GE Aerospace (NYSE: GE) stock following its fourth-quarter 2025 earnings report, largely due to the company's implied guidance that operating profit margins would be similar to those in 2025. That's a superficially disappointing result for a company set to grow revenue at a low double-digit rate in 2026.Still, digging deeper reveals a host of reasons why investors should be more optimistic, not more pessimistic, about GE's long-term earnings outlook after these results. Here's why.The company's core business is the design and manufacture of commercial aircraft engines, including the CFM56 (used on the legacy Boeing 737 and the Airbus A320 family) and the LEAP (used on the Boeing 737 MAX and the Airbus A320neo). Newly installed engines are usually sold at a loss, at least in the first years of production, only to generate highly lucrative service and aftermarket revenue on long-term service agreements (LTSA) as aircraft engines can run for more than 40 years.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
Quelle: MotleyFool