GE Vernova shares fell Wednesday despite the gas turbine maker delivering a beat-and-raise quarter and announcing a smart acquisition to fortify its future into the end of the decade.
The sellers may be taking issue with the order-growth trajectory for next year, but that looks short-sighted when taking a holistic view of the company’s business
Revenue in the third quarter ended Sept. 30 increased about 27% year over year to $12.64 billion, topping expectations of $11.99 billion, according to LSEG. Earnings per share (EPS) increased 193% to $4.81, exceeding the LSEG consensus estimate of $3.94 apiece. GEV YTD mountain GE Vernova’s year-to-date stock performance.
Bottom Line Last earnings go-round in July , GE Vernova missed the mark on profits per share and the stock tumbled 8.7%. However, we argued investors should look past the bottom-line miss and focus instead on the strong order growth, arguing it was the true indicator of demand. Admittedly, GE Vernova hasn’t been a great performer since then, struggling to gain its footing along with many other stocks levered to the buildout of artificial intelligence infrastructure.