What You Need To Know Ahead of GE Vernova’s Earnings Wednesday

Key Takeaways

• GE Vernova reports earnings early Wednesday, with analysts expecting higher revenue from the same time last year.
• The report will be GE Vernova’s third since being spun off from GE Aerospace, completing General Electric’s split into three companies.
• The company said last month that it expects full-year revenue at the high end of its previous projections of $34 billion to $35 billion.

GE Vernova (GEV) is scheduled to release earnings Wednesday morning, its third report since completing the split of General Electric into three standalone companies.

Analysts expect GE Vernova to report $8.92 billion in revenue for the quarter, up from $8.13 billion the same time last year, when it was still part of the GE conglomerate, along with GE Aerospace (GE), from which GE Vernova was spun off.

GE Vernova is also projected to post a profit of $134.5 million after its prior two quarters as an independent company have been split between one net profit and one net loss.

GE Vernova shares closed up 0.7% Friday to more than $272, and have nearly doubled in value since their April debut.

Analysts Believe GE Vernova Well-Positioned To Benefit From AI Demand

Since it was spun off from GE in April, analysts largely have been optimistic about the company’s future, saying it’s well-positioned to benefit from the growing demand for electricity, especially via renewable methods like wind and solar, to run data centers and power-hungry artificial intelligence (AI) technology.

Last month, company leadership said at an investor event that it expects full-year revenue to come in at the higher end of its projected $34 billion to $35 billion range, with analysts expecting revenue of $34.99 billion for the year.

GE Vernova also said it expected the company’s wind segment to post another loss for the third quarter because of the high costs of its offshore wind business, which suffered a setback as an offshore blade broke off the coast of Massachusetts earlier this year. However, the GE Vernova wind business is expected to be “modestly profitable” in the fourth quarter.

Read the original article on Investopedia.