GE Vernova (NYSE:GEV) Shares Down 8.1% on Disappointing Earnings

Key Points

• GE Vernova shares fell 8.1% after the company reported weaker-than-expected quarterly earnings, highlighting investor disappointment despite solid revenue growth.
• The company posted $2.47 EPS versus analyst expectations of $3.17, while revenue came in at $11.1 billion, above estimates and up 21.9% year over year.
• Despite the earnings miss, GE Vernova raised its full-year revenue outlook for the second straight quarter, supported by strong power-demand trends, record orders, and AI/data center-related demand.

Shares of GE Vernova Inc. (NYSE:GEV - Get Free Report) dropped 8.1% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $985.03 and last traded at $991.7990. Approximately 4,797,921 shares changed hands during trading, an increase of 71% from the average daily volume of 2,809,006 shares. The stock had previously closed at $1,078.81.

The company reported $2.47 earnings per share for the quarter, missing analysts' consensus estimates of $3.17 by ($0.70). The business had revenue of $11.10 billion during the quarter, compared to analysts' expectations of $10.78 billion. GE Vernova had a return on equity of 43.97% and a net margin of 23.81%.GE Vernova's quarterly revenue was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.86 EPS.

GE Vernova Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 16th were given a $0.50 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $2.00 annualized dividend and a yield of 0.2%. GE Vernova's payout ratio is currently 5.83%.

Trending Headlines about GE Vernova

Here are the key news stories impacting GE Vernova this week:

• Positive Sentiment: GE Vernova raised its full-year revenue outlook for the second straight quarter, helped by strong power-demand trends and surging orders, including AI/data center-related demand. Reuters article
• Positive Sentiment: The company reported revenue of $11.1 billion, above expectations, and said cash flow and backlog improved, signaling continued operational strength. Yahoo Finance article
• Positive Sentiment: Order growth was described as record-setting, which supports future sales visibility and reinforces the investment case around grid and power infrastructure demand. Yahoo Finance article
• Neutral Sentiment: Several analysts and commentary pieces are now framing the stock as fairly valued after its big run, suggesting the market may need even stronger execution to justify further gains. Yahoo Finance article
• Negative Sentiment: GE Vernova missed quarterly earnings expectations, which is weighing on sentiment despite the revenue beat. Zacks article
• Negative Sentiment: Margin pressure in the wind segment remains a concern, with losses widening and that business continuing to dilute overall profitability. Proactive Investors article
• Negative Sentiment: Management warned that global tariffs could increase costs by as much as $200 million, creating an added headwind for future margins and earnings. Benzinga transcript

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Jefferies Financial Group decreased their target price on GE Vernova from $1,350.00 to $1,210.00 and set a "buy" rating for the company in a research report on Thursday, June 11th. Citigroup boosted their price target on shares of GE Vernova from $779.00 to $1,110.00 and gave the stock a "neutral" rating in a report on Monday, April 13th. Argus set a $1,300.00 price target on shares of GE Vernova in a research report on Monday, April 27th. Zacks Research downgraded shares of GE Vernova from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, Susquehanna set a $1,300.00 price objective on shares of GE Vernova in a research report on Thursday, April 23rd. Three analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,089.88.

Insider Buying and Selling at GE Vernova

In related news, CAO Matthew Joseph Potvin sold 2,333 shares of GE Vernova stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $1,059.09, for a total value of $2,470,856.97. Following the completion of the sale, the chief accounting officer owned 3,549 shares of the company's stock, valued at approximately $3,758,710.41. This trade represents a 39.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Victor Abate sold 4,819 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $948.08, for a total value of $4,568,797.52. Following the completion of the sale, the chief executive officer owned 1,835 shares in the company, valued at $1,739,726.80. This represents a 72.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.21% of the stock is currently owned by corporate insiders.

Institutional Trading of GE Vernova

Hedge funds and other institutional investors have recently modified their holdings of the business. Auto Owners Insurance Co raised its holdings in GE Vernova by 110,973.4% during the 4th quarter. Auto Owners Insurance Co now owns 34,858,156 shares of the company's stock valued at $2,278,224,000 after acquiring an additional 34,826,773 shares during the period. Vanguard Group Inc. raised its stake in shares of GE Vernova by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 25,023,625 shares of the company's stock valued at $16,354,691,000 after purchasing an additional 208,162 shares during the period. State Street Corp lifted its holdings in GE Vernova by 2.1% during the 4th quarter. State Street Corp now owns 11,469,670 shares of the company's stock worth $7,496,232,000 after purchasing an additional 231,392 shares in the last quarter. Geode Capital Management LLC boosted its stake in GE Vernova by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 6,249,193 shares of the company's stock worth $4,074,039,000 after purchasing an additional 68,894 shares during the period. Finally, Morgan Stanley grew its holdings in GE Vernova by 12.8% during the 4th quarter. Morgan Stanley now owns 6,054,474 shares of the company's stock valued at $3,957,024,000 after buying an additional 685,466 shares in the last quarter.

GE Vernova Stock Performance

The company has a 50-day moving average price of $1,037.70 and a two-hundred day moving average price of $916.52. The stock has a market capitalization of $266.52 billion, a P/E ratio of 28.89, a PEG ratio of 3.98 and a beta of 1.09. The company has a quick ratio of 0.65, a current ratio of 0.89 and a debt-to-equity ratio of 0.19.

About GE Vernova

GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.

The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.

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