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Cambridge, Massachusetts-based GE Vernova Inc. (GEV) engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity. It operates through Power, Wind, and Electrification segments. With a market cap of $90.7 billion, GE Vernova’s operations span the Americas, Indo-Pacific, and EMEA. The renewable energy giant is set to unveil its fourth-quarter earnings before the market opens on Wednesday, Jan. 22.
Ahead of the event, analysts expect GE Vernova to report an adjusted profit of $2.40 per share. The company has a mixed earnings surprise history. It exceeded analysts' earnings estimates twice over the past three quarters while missing on one other occasion. Its adjusted EPS of $0.35 for the last reported quarter surpassed analysts’ estimates by a significant 59.1%.
For fiscal 2024, analysts expect GE Vernova to report an adjusted EPS of $2.26. While in 2025, its adjusted EPS is expected to surge 194.3% year-over-year to $6.65.
GE Vernova stock has soared 99.6% over the past six months, significantly outperforming the Utilities Select Sector SPDR Fund’s (XLU) 12.1% gains and the S&P 500 Index’s ($SPX) 6.5% returns during the same time frame.
GE Vernova’s stock prices rose 1.3% after the release of its impressive Q3 results on Oct. 23. It delivered a staggering 17% year-over-year organic increase in total orders to $9.4 billion, driven by 28% organic growth in services orders. Meanwhile, its total revenues surged 8% year-over-year to $8.9 billion driven by positive pricing trends across all segments. Furthermore, its adjusted EBITDA surged 18.5% year-over-year to $243 million and its adjusted EBITDA margin expanded by 20 basis points to 2.7%.
Alongside GE Vernova experienced significant improvement in cash flow generation, its operating cash flow surged to $1.1 billion, up from $233 million in the year-ago quarter. This strong Q3 performance highlights GE Vernova's strategic focus on service growth and operational efficiency, setting a positive outlook for continued financial success in the future.
The consensus opinion on the GEV stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 25 analysts covering the stock, 18 recommend “Strong Buy,” two suggest “Moderate Buy,” and five advocate “Hold” rating. Its mean price target of $361.04 represents a 6.5% premium to current price levels.
