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."
Sign up for Kiplinger’s Free E-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
-
Ten Cheapest Places to Live in TexasProperty Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for YouAI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift StocksResilience and de-escalation defined another generally positive day for financial markets.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden RisksPotential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
