GE Vernova shares fall as Q3 earnings miss overshadows revenue beat

CAMBRIDGE, Mass. - GE Vernova Inc. (NYSE:GEV) reported mixed third-quarter results on Wednesday, with revenue beating expectations but earnings falling short, sending shares down 5.5% in early trading.

The energy technology company posted a loss of -$0.35 per share for the quarter, significantly below the analyst consensus estimate of $0.24 in earnings. Revenue came in at $8.91 billion, surpassing the $8.78 billion analysts had projected and representing an 8% increase year-over-year.

GE Vernova CEO Scott Strazik highlighted the company's "solid third quarter," noting double-digit orders growth and continued revenue expansion. "We continued to leverage lean to drive operational improvements across safety, quality, delivery and cost," Strazik said.

The company reported total orders of $9.4 billion, up 17% organically, driven by a 28% organic increase in services orders across all segments. Revenue growth was led by the Power and Electrification segments, while the Wind segment faced challenges.

Despite the earnings miss, GE Vernova reaffirmed its full-year 2024 guidance, projecting revenue to trend towards the higher end of $34-35 billion. The company also expects free cash flow to trend towards the upper end of its $1.3-1.7 billion forecast.

CFO Ken Parks emphasized the company's strong cash position, stating, "We increased our already solid cash balance to $7.4 billion from substantial positive free cash flow and proceeds from the value-accretive sale of a stake in a business in India."

While Power and Electrification segments showed improvement, the Wind segment reported increased losses due to offshore wind contract issues. However, the company noted that Onshore Wind delivered its most profitable quarter in years.

GE Vernova plans to provide an update on strategic capital allocation and its multi-year financial outlook at an investor event in December.

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Source: Investing.com