GE Aerospace beat profit expectations by 7% on engine services, spare-parts sales up 20% and services up 17%; it raised its full-year forecast but that implies a below-expectations fourth quarter as January flight schedules fall sharply. At 40 times profit, the cycle has not collapsed but is in its final stages.

General Electric Aerospace has delivered a surprisingly strong performance, led by its engine division , with profits exceeding expectations by 7%. This is partly thanks to Tyler, and we've talked about this a lot.

A large part of this performance is also due to the services sector. It's not about selling brand new engines , it's about running these engines intensively. It needs maintenance.

Sales of spare parts increased by 20% in the engine sector. As for the services that General Electric currently provides, they have increased by 17%. I believe airlines have stated that they will maintain their strong performance during the holiday season, but with current demand trends, flight schedules will see a sharp decline in January.

And I think General Electric is aware of that too.

Interestingly, it raised its profit forecast for the entire year, but it exceeded expectations. So, if we take the full-year forecast and add to it the results of the three quarters that we know, the revised forecast indicates that the fourth quarter will be below expectations.

I think the takeaway here is that the cycle hasn't collapsed , but we're in its final stages, and you're now buying at a price that's 40 times the profit. I think the market is right to disregard these things ; it's not the end of the world, but it seems to be late in the cycle.