General Electric on Tuesday raised its full-year profit forecast for a third time this year on robust demand for jet engine spare parts and services and improved performance in its renewable business.
Shares of the company rose 4.5% before the bell.
Boston, Massachusetts-based GE now expects 2023 adjusted profit per share of $2.55 to $2.65, compared with its earlier forecast of $2.10 to $2.30.
Free cash flow for the year is estimated to be in a range of $4.7 billion to $5.1 billion, up from $4.1 billion to $4.6 billion expected in July.
GE's aviation business, its cash cow, has been lifted by a surge in demand for aftermarket services as a strong rebound in air travel prompted airlines to use jets for longer against the backdrop of shortage of commercial planes.
"At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in commercial engines and services," CEO Larry Culp said in a statement.
GE's aerospace unit, which makes engines for jets made by Boeing Co and Airbus, posted double-digit growth in orders, revenue and profit from a year earlier. The unit's margin expanded by 130 basis points in the quarter from a year ago.
Meanwhile, profits at its grid and onshore wind businesses in the quarter helped narrow losses at its renewable unit. Culp expressed confidence that the businesses would continue to improve.
The renewable business has struggled due to a combination of weak demand, higher raw material and labor costs.
GE, which has completed the separation of its healthcare unit, said it would spin off its energy businesses, including renewables, and aerospace businesses into independent companies in the beginning of the second quarter.
GE said adjusted profit for the quarter through September was $1.62 billion, compared with a profit of $359 million a year earlier.
On a per-share basis, adjusted profit was 82 cents, while adjusted revenue rose 18% to $16.31 billion.
(Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; editing by Sriraj Kalluvila and Jason Neely)
