Why GE Vernova Stock Is Higher After Its Earnings Miss
GE Vernova stock is trading up on Wednesday even after the power company came up short of estimates for its fourth quarter. Here's what investors need to know.
GE Vernova (GEV) stock is trading comfortably higher Wednesday even after the gas power and renewable energy company missed top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, GE Vernova's revenue increased 5.1% year over year to $10.6 billion. Its earnings per share (EPS) rose 140.3% from the year-ago period to $1.73.
"GE Vernova built a strong foundation in 2024 with solid orders and revenue growth, as well as significant margin expansion and cash generation," said GE Vernova CEO Scott Strazik in a statement. "We saw strength in Power and Electrification and improvement in Wind, while growing our equipment backlog at better margins. Our progress reinforces the important role we play in electrifying and decarbonizing the world as we deliver on accelerating demand for our equipment and services."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
GEV's results came up short of analysts' expectations. Wall Street was anticipating revenue of $10.7 billion and earnings of $2.30 per share, according to MarketWatch.
On a positive note, though, GE Vernova reaffirmed its outlook for 2025. For the full fiscal year, the company expects to achieve revenue in the range of $36 billion to $37 billion, representing growth of 3% to 5.9% over 2024.
"We had a strong finish to 2024 as we execute our strategy to deliver disciplined revenue growth with increased profitability and positive cash generation," said GE Vernova Chief Financial Officer Ken Parks. "We will invest in growth and innovation, while returning capital to shareholders and maintaining our investment grade balance sheet."
Is GE Vernova stock a buy, sell or hold?
GE Vernova has nearly tripled in value on the price charts since last April, when the gas power and renewable energy business split from the industrial conglomerate formerly known as General Electric and is now trading near record highs. And Wall Street remains bullish on the utility stock.
According to S&P Global Market Intelligence, the consensus recommendation among the analysts following the stock that it tracks is a Buy.
However, analysts' price targets have had a tough time keeping up with the large-cap stock's rally up the price charts. Indeed, the average analyst target price of $375.87 represents a discount of more than 13% to current levels.
Financial services firm Truist Securities is one of those with a Buy rating on GE Vernova, along with a $420 price target.
"With bullish power demand sentiment and strong bookings commentary/cash generation expectations, GEV continues to be our preferred defensive name as we begin the second Trump administration," wrote Truist Securities analyst Jordan Levy in a January 21 note. He sees even more upside for GE Vernova shares this year thanks to growth in artificial intelligence and data center demand.
Related Content
-
The New Average Divorce Rate By Age: Are You in the Risk Zone?While the overall divorce rate has seen a small but steady decline, gray divorces have been on the rise since the 1990s.
-
Is the Housing Market's 'Lock-In Effect' Finally Starting to Ease?As mortgage rates stabilize and fewer owners hold ultra-low loans, the lock-in effect may be losing its grip.
-
My wife says our $4.3 million savings are 'our grandkids' inheritance.'I want to travel while we are still healthy, but my wife wants to pass down our wealth. Who is right?
-
Today's Senior Living Communities Are Not Your Grandma's 'Old Folks' Home': An Expert Guide to Shopping for the Right FitSenior living facilities have improved and are as diverse as the people who inhabit them. Now, they're more than just a place to go — they're a place to grow.
-
3 Common Misconceptions About Working With a Financial PlannerThink financial planners are only for the wealthy and that AI can replace human advice? Nope. Even people with moderate wealth need professional advice.
-
Should You Consider Investing in the Quantum Computing Sector? This Investment Adviser Has Some SuggestionsInvestors interested in quantum computing could consider ETFs focused on cloud services enabling small businesses to use big technology.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Yes, Artificial Intelligence Stocks Are BoomingIt's fair to ask about the latest tech boom, "Is it really different this time?"
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
