GE Aviation (GE) reported third-quarter results ahead of expectations on Tuesday morning, as Chief Executive Officer (CEO) Larry Culp said the company saw strong demand for its aircraft engines and other parts in the quarter.

The engine and aerospace parts maker posted revenue of $9.84 billion, while analysts surveyed by Visible Alpha had a consensus estimate of $9.55 billion. Net income was $1.89 billion, or $1.56 per share, compared with expectations of $1.28 billion and $1.19.

The company also raised its full-year 2024 earnings forecast, bringing adjusted earnings per share (EPS) to $4.20 to $4.35, up from $3.95 to $4.20 previously.

“The GE Aerospace team delivered strong results, with demand driving orders up 28%,” said Culp. “We grew earnings by 25% and produced substantial free cash flow, both largely driven by services. Given the strength of our results and expectations for the fourth quarter, we are raising our earnings and cash guidance for the year.”

Impact of the Boeing Machinists Union strike

In the weeks leading up to GE Aerospace’s report, Bernstein analysts said the company was facing a “key question”: the impact of the Boeing (BA) machinists who would have a union strike on its operations. Slower production of Boeing aircraft would mean lower engine sales, but would also improve the maintenance market for the existing engines.

GE Aerospace made no mention of the impact of the five-week strike at Boeing in its earnings release, which could end soon after the parties reached a tentative agreement this weekend that union members will vote on Wednesday.

Analysts are the most bullish on GE Aerospace shares of the former General Electric segments, with all eight analysts tracked by Visible Alpha maintaining a buy rating, compared to 11 of 13 for GE Vernova and six of 11 for GE HealthCare.GEHC). GE Aerospace also has higher expected earnings, with an average target price about 9% above current levels, compared to just over 3% for GE Vernova and GE HealthCare.

Shares of GE Aerospace fell about 1% immediately after the results, but are up about 40% since its early April spin-off from GE Vernova (GEV).

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