GE: Aerospace Earnings Impress, But 2017 Power Scandal Still Haunts — And $GE Faces Tough Comparison
Court: S.D. New York
Case: 1:17-cv-08457
GE Aerospace 
GE is winning investor attention after a blowout Q2 earnings report, but deeper analysis shows it’s under pressure when compared with peers like Northrop Grumman 
NOC. While GE boasts stronger profitability metrics, it lags in revenue and dividend history. And behind the bullish outlook, a GE settlement from its 2017 Power segment missteps continues to cast a long shadow.
📊 How GE and Northrop Stack Up
- Revenue: GE - $38.7B vs. Northrop - $41.03B
- EPS: GE - $6.43 vs. Northrop - $25.34
- P/E Ratio: GE - 41.41 vs. Northrop - 20.52
- Profit Margin: GE - 17.63% vs. Northrop - 9.19%
- ROE: GE - 29.15% vs. Northrop - 25.46%
- Dividend Yield: GE - 0.5% vs. Northrop - 1.8%
- Beta (Volatility): GE - 1.37 vs. Northrop - 0.15
- Analyst Score: GE - 2.91 vs. Northrop - 2.56
Key Takeaway: GE leads in profitability and EPS growth, but Northrop Grumman is favored for income-focused investors due to higher dividend yield, long-term payout track record, and lower stock volatility.
🧾 But GE’s 2017 Power Segment Scandal Still Lingers
GE finalized a settlement in early 2025 with investors over allegations that it misled them about its 2017 cash flow outlook and concealed major liabilities.
📆 Timeline Overview
- Oct 20, 2017 – GE cut cash flow guidance, stock fell 7%
- Nov 13, 2017 – Dividend cut by 50%; shares down 12.5%
- Jan 16, 2018 – $6.2B insurance loss disclosed, causing a 13% drop
- Nov 1, 2019 – Investors filed suit over misrepresentations
- Jan 2025 – GE reached a legal settlement
💼 Allegations Include
- Inflated 2017 guidance
- Misstated financial condition of Power segment
- Delayed disclosure of insurance shortfalls
- Misleading investors on dividend sustainability
💰 Investor Update
- Settlement covers losses during 2017–2018 crash
- Compensation process expected after court approval
- Reflects ongoing efforts by GE to restore trust with shareholders
👉 You can check more information about it and file for a payout HERE.
GE Aerospace is pushing ahead with innovation and profit growth, but its historical missteps — and fierce competition from peers like Northrop — highlight that not all engines of trust recover at the same speed.