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
-
E-ZPass Scam Texts are Still Going Around. Here's What to Look Out ForScammers have been sending fake texts about E-ZPass for over a year. Know what to look out for and what to do.
-
A Savings Tool to Empower People With DisabilitiesAn ABLE account can improve quality of life for individuals with a disability — it permits tax-free saving for ongoing expenses without jeopardizing benefits.
-
Social Security Fairness Act: Five Financial Planning Issues to RevisitMore money as a public-sector retiree is great, but there could be unintended consequences with taxes, Medicare and more if you're not careful.
-
Social Security Warning: Five Missteps Too Many Women MakeClaiming Social Security is complicated, and for women the stakes are high. What you don't know can cost you, so make sure you do know these five things.
-
To Buck the Third-Generation Curse, Focus on the Family StoryThe key is to motivate the next generations to contribute to the family business in a productive way. You can look to Lawrence Welk's family as a prime example.
-
Walmart's Transformative Ways Spark a 100,000% Stock ReturnWalmart's strategic store expansion and relentless cost-cutting have catapulted its share price over the years.
-
20 Ways to Clean Up Your Finances This SpringSpring cleaning is therapeutic and stops costly problems from building up around the home. Why not tackle the dusty corners of your finances at the same time?
-
How Roth Accounts Can Ease Your Tax Burden in RetirementStrategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love.
-
Are You a High Earner But Still Broke? Five Fixes for ThatIf you're a HENRY (a higher earner, not rich yet) but feel like you still live paycheck to paycheck, there are steps you can take to get control of your financial future.
-
Tax Diversification: Smart Ways to Preserve Your Nest EggA long and active retirement may be costly — and may even bump you into a higher tax bracket. Paying some taxes on your savings now could be the answer.
