GE Vernova Eyes Strong Earnings Ahead of Q4 Reveal
Cambridge, Massachusetts-based GE Vernova Inc. (GEV) specializes in diverse products and services that generate, transfer, orchestrate, convert, and store electricity. Operating through three main segments—Power, Wind, and Electrification—GE Vernova boasts a market cap of $90.7 billion. The company, a major player in the renewable energy sector, is set to announce its fourth-quarter earnings before the markets open on Wednesday, January 22.
Analysts Predict Earnings Growth
Before the earnings release, analysts anticipate GE Vernova will announce an adjusted profit of $2.40 per share. The company’s earnings surprise history shows it exceeded analysts’ expectations twice in the past three quarters while missing once. Notably, its adjusted EPS of $0.35 in the last reported quarter surpassed forecasts by a remarkable 59.1%.
Looking ahead, for fiscal 2024, analysts project an adjusted EPS of $2.26 for GE Vernova. In 2025, adjusted EPS is expected to jump 194.3% year-over-year to $6.65.
Strong Stock Performance Outpaces Competitors
GE Vernova’s stock has surged 99.6% over the last six months, vastly outperforming the Utilities Select Sector SPDR Fund’s (XLU) 12.1% gains and the S&P 500 Index’s ($SPX) 6.5% returns for the same period.
Impressive Q3 Results Showcase Growth
After announcing its strong Q3 results on October 23, GE Vernova’s stock rose 1.3%. The company reported a staggering 17% year-over-year organic increase in total orders to $9.4 billion, supported by 28% organic growth in services orders. Additionally, total revenues climbed 8% year-over-year to $8.9 billion, aided by positive pricing trends across all segments. The adjusted EBITDA increased 18.5% from the prior year to $243 million, with the adjusted EBITDA margin expanding by 20 basis points to 2.7%.
GE Vernova also saw a significant boost in cash flow, with operating cash flow soaring to $1.1 billion from just $233 million in the prior year’s quarter. This robust performance highlights GE Vernova’s commitment to growing its services and improving operational efficiency, creating a strong outlook for future financial success.
Analysts Maintain a Positive Outlook
The consensus among analysts regarding GEV stock is extremely positive, earning an overall “Strong Buy” rating. Of the 25 analysts covering the stock, 18 recommend “Strong Buy,” two suggest “Moderate Buy,” and five advise a “Hold.” The average price target of $361.04 indicates a 6.5% premium over current price levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
