“CES operating profit is now expected to be $6.6 billion to $6.8 billion, up $300 million at the midpoint from the prior guide, reflecting improved services mix.”

In context

“e most value. Given the strong year-to-date performance, and the trajectory entering the fourth quarter, we are raising our earnings and cash guidance. Revenue remains the same across our businesses. At CES, we continue to expect low-double digits to mid-teens growth. This includes continued sequential growth in LEAP deliveries in the fourth quarter, but the full-year will now be down approximately 10% year-over-year. This guidance assumes ongoing deliveries to Boeing. We also continue to expect DPT growth of mid-to-high single digits, in line with the year-to-date performance of 6% growth. Operating profit is now expected to be in a range of $6.7 billion to $6.9 billion, up $150 million at the midpoint in the prior guide, implying over 200 basis points of margin expansion year-over-year. CES operating profit is now expected to be $6.6 billion to $6.8 billion, up $300 million at the midpoint from the prior guide, reflecting improved services mix. Internal shop visit growth will be lower than our prior estimate, offset by higher spare part sales, work scope and mix. We expect DPT to be at the lower end of the current profit range of $1 billion to $1.3 billion. This reflects 3Q performance, increased investment in next-gen programs and some pressure in P&AT. Corporate costs and eliminations are now expected to be around $850 million, down from below $900 million previously and $150 million reduction year-over-year. We now expect a tax rate of around 20%, lower than our prior expectation of low 20s. Interest expense is unchanged. We are raising our adjusted EPS guidance to $4.20 to $4.35, up $0.20 at the midpoint from the prior guide from improved profit and lower tax rate. We are also raising our free cash flow guidance to $5.6 bill”