Valued at a market cap of $78.4 billion, GE Vernova Inc. (GEV) is an energy company that generates, transfers, orchestrates, converts, and stores electricity. The Cambridge, Massachusetts-based company plays a pivotal role in decarbonizing the energy sector by providing innovative technologies and services that support cleaner, more efficient power generation and grid modernization. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Wednesday, Apr. 23.
Ahead of this event, analysts expect this utility company to report a profit of $0.43 per share, up by a notable 204.9% from a loss of $0.41 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in two of the last four quarters, while missing on other two occasions. In Q4 2024, GEV’s EPS of $1.73 fell short of the forecasted figure by 25.4%.
For fiscal 2025, analysts expect GEV to report a profit of $6.39 per share, up by a massive 166.3% from $2.40 in fiscal 2024. Furthermore, its EPS is expected to grow 73.2% year over year to $11.07 in fiscal 2026.
Shares of GEV have rallied 147.3% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 4.7% gain, and the Utilities Select Sector SPDR Fund’s (XLU) 15.2% rise over the same time frame.
On Jan. 22, GEV released its Q4 results. It posted weaker-than-expected performance with earnings of $1.73 per share and revenue of $10.6 billion, both missing estimates. However, despite this, its shares rose 2.7% that day. The market likely reacted positively to the company’s underlying strength as its revenue grew 5.1% year-over-year, while its EPS surged by an impressive 140.3%. Strong order growth in its power and electrification segments and margin expansion across all of its reportable segments aided the results. However, a 2.9% fall in its power segment’s revenue and a 41.2% decline in wind segment orders due to softer demand for onshore wind equipment somewhat affected its otherwise strong performance and led to its below-par results.
GE Vernova reaffirmed its 2025 outlook, projecting full-year revenue between $36 billion and $37 billion, and targeting high-single-digit adjusted EBITDA margins. This positive guidance might have reinforced investor optimism.
Wall Street analysts are highly optimistic about GEV’s stock, with a "Strong Buy" rating overall. Among 28 analysts covering the stock, 22 recommend "Strong Buy," two advise “Moderate Buy,” and four suggest “Hold.” The mean price target for GEV is $406.52, which indicates a 24.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (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.
