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Model GE Vernova wind turbines at the China International Import Expo on Nov. 5, 2024Key Takeaways
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GE Vernova is scheduled to post its fourth-quarter earnings report before the bell Wednesday.
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The stock has nearly tripled in value since General Electric completed its split into three standalone companies last April.
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The company's wind segment will likely be in focus, as GE Vernova has said it expects the division to be "approaching profitability" by the end of the year.
GE Vernova (GEV) is set to report earnings before the market opens Wednesday as the energy company approaches one year since General Electric completed its split into three separate companies.
Analysts covering the stock tracked by Visible Alpha are mostly bullish, with 10 rating the stock a "buy," and two giving it a "hold" rating. Their price targets range from $361 to $446, with the average at about $392 sitting below Friday's record level after a strong week for the stock. Shares of GE Vernova gained nearly 3% Friday to close at an all-time high of $401.41, and have nearly tripled in value since their April debut.
The company is expected to report revenue of $10.73 billion for the final quarter of 2024, up from $10.04 billion in the same time last year, when it was still part of General Electric. Net income is expected to come in at $634.87 million, after two of the company's first three quarters as a standalone company have resulted in net losses.
Wind Segment Profitability in Focus
The company said in previous quarters that its wind segment, the lone unprofitable arm of GE Vernova's three divisions, should be "approaching profitability" by the end of the fiscal year. The company said the shift will take time as it moves away from higher-cost offshore wind projects.
Analysts have upgraded GE Vernova or lifted their price targets several times since it became its own company, including Bank of America analysts earlier this week.
They have cited the growing demand for energy, especially in renewable forms, to power projects like data centers and artificial intelligence products as a positive catalyst for GE Vernova's sales going forward.
The other former GE divisions, GE Aerospace (GE) and GE HealthCare (GEHC), are set to report their fourth-quarter results on Jan. 23 and Feb. 13, respectively.
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