Latest news with #GE Vernova
Yahoo
24-07-2025
- Business
- Yahoo
GE Vernova Q2 Earnings Preview: Will GEV Stock Keep Soaring?
GE Vernova (GEV) will release its second-quarter earnings on Wednesday, July 23. As a key player in the electrification and decarbonization space, the company is well-positioned to benefit from significant tailwinds reshaping the global energy landscape. Electricity demand is surging, driven largely by the expansion of data centers supporting artificial intelligence (AI) applications and broader industrial growth. At the same time, global efforts to transition to cleaner energy sources, electrify transportation, and modernize power grids are driving steady demand for GE Vernova's equipment and services. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. These trends have resulted in a growing backlog of orders, providing a solid foundation for future revenues. The company had a solid start to 2025, delivering 11% revenue growth, significant margin expansion, and generating substantial free cash flow. Orders increased by about 8% to $10.2 billion. Thanks to the solid demand environment and solid growth, GE Vernova stock has delivered a 68% gain so far in 2025. Further, GEV stock has surged 230% over the past year. With GEV climbing ahead of the upcoming earnings report, a strong Q2 performance and upbeat guidance for the remainder of the year could further energize the stock. With this background, let's turn to what analysts are projecting for Q2. GE Vernova: Positioned for a Solid Q2 as Demand Surges GE Vernova is entering the second quarter with strong momentum, backed by surging demand across its core markets. The company is seeing robust tailwinds from global trends in manufacturing expansion, industrial electrification, electric vehicles, and the rapid rise of data centers. These end markets are creating unprecedented demand for reliable base load power, upgraded grid infrastructure, and decarbonization solutions, areas where GE Vernova's technology and service capabilities shine. As global supply chains adapt to new trade dynamics by becoming more regional and resilient, manufacturers are ramping up capacity. This expansion is driving electricity demand, further boosting GE Vernova's growth prospects. The company's installed base is proving to be a strategic asset. As industrial activity intensifies, usage of GE Vernova's equipment is increasing, opening up lucrative opportunities in aftermarket services, including upgrades. Services now account for over 60% of the company's $123 billion backlog reported at the end of the first quarter. This high-margin, recurring revenue stream supports long-term cash flow and adds visibility and resilience to future earnings. In Q2, GE Vernova is expected to report solid revenue growth, primarily driven by continued strength in both the Power and Electrification segments. Power segment orders surged 28% in Q1, particularly in gas power equipment and services. For the second quarter, management anticipates continued year-over-year growth in gas equipment orders. It expects organic revenue to rise in the mid-single-digit range, reflecting strong equipment sales and a growing service business. The electrification segment is another growth engine for the company. With grids around the world under pressure to expand and modernize, GE Vernova is seeing a significant uptick in demand for grid-related equipment. Management expects strong order activity and healthy margins to continue into the second quarter. With favorable pricing dynamics, volume growth, and ongoing productivity improvements, GE Vernova appears well-positioned to deliver another strong quarter on the bottom line front. Analysts forecast Q2 earnings at $1.60 per share, a significant jump of over 125% from the $0.71 posted in the same period last year. Notably, GE Vernova has beaten earnings expectations in three of the past four quarters, including a 102% beat in Q1. Will GE Vernova Stock Keep Soaring? GE Vernova has been on an impressive run lately, and there are strong reasons to believe that momentum could continue. With robust demand across power generation, grid modernization, and electrification, driven by macro trends like AI, EV adoption, and global decarbonization, GE Vernova is well-positioned to sustain its growth trajectory in Q2. Its expanding backlog, high-margin service revenue, and focus on growing its margins set the stage for a strong Q2 report. Wall Street analysts are bullish about GE Vernova's growth prospects and maintain a 'Strong Buy' consensus rating ahead of earnings. Moreover, the highest price target of $702 implies 28.7% upside potential in GEV stock from current levels. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
23-07-2025
- Automotive
- Reuters
S&P 500 notches record high close on optimism about trade deals
July 23 (Reuters) - The S&P 500 notched a record high close on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement U.S. President Donald Trump struck with Japan. The White House's deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan. The benchmark S&P 500 has now climbed about 8% in 2025. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Shares of GE Vernova (GEV.N), opens new tab surged to an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from AI and cryptocurrency data centers. Heavyweight AI chipmaker Nvidia (NVDA.O), opens new tab climbed and fueled gains in the S&P 500 and Nasdaq. Tesla (TSLA.O), opens new tab swung between losses and gains ahead of its quarterly report due after the closing bell. Investors will focus on the electric vehicle maker's analyst conference call. They have braced for Tesla to report a steep drop in revenue related to mounting competition, a lack of new car models and a consumer backlash against CEO Elon Musk. "What you will hear is an awful lot of discussion about the future and a broad acknowledgement that this was a terrible quarter," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. Alphabet (GOOGL.O), opens new tab dipped, with the Google parent also set to report results after the close of trading. According to preliminary data, the S&P 500 (.SPX), opens new tab gained 49.93 points, or 0.80%, to end at 6,359.91 points, while the Nasdaq Composite (.IXIC), opens new tab gained 127.33 points, or 0.61%, to 21,023.67. The Dow Jones Industrial Average (.DJI), opens new tab rose 511.35 points, or 1.15%, to 45,013.79. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months. Analysts on average expect S&P 500 companies to report a 7.5% increase in earnings for the second quarter, according to LSEG I/B/E/S. Microsoft (MSFT.O), opens new tab, Nvidia and other technology heavyweights that have seen their valuations soar due to their leadership in AI are expected to drive much of that quarterly earnings growth. Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged after beating Wall Street's estimates for second-quarter profit and revenue. Texas Instruments (TXN.O), opens new tab tumbled after its quarterly profit forecast pointed to weaker-than-expected demand for its analog chips and underscored tariff-related uncertainty. Texas Instruments' report weighed on other analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab losing ground. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool.
Reuters
23-07-2025
- Automotive
- Reuters
S&P 500 and Nasdaq rally to record highs on optimism about trade deals
July 23 (Reuters) - The S&P 500 and Nasdaq notched record high closes on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement President Donald Trump struck with Japan. The White House's deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan. The benchmark S&P 500 has now climbed about 8% in 2025, while the Nasdaq has gained almost 9%. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Shares of GE Vernova (GEV.N), opens new tab surged to 14.6% an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from AI and cryptocurrency data centers. Heavyweight AI chipmaker Nvidia (NVDA.O), opens new tab climbed 2.25% and fueled gains in the S&P 500 and Nasdaq. Tesla (TSLA.O), opens new tab edged up 0.14% ahead of its quarterly report due after the closing bell. Investors will focus on the electric vehicle maker's analyst conference call. They have braced for Tesla to report a steep drop in revenue related to mounting competition, a lack of new car models and a consumer backlash against CEO Elon Musk. "What you will hear is an awful lot of discussion about the future and a broad acknowledgement that this was a terrible quarter," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. Alphabet (GOOGL.O), opens new tab dipped 0.58%, with the Google parent also set to report results after the close of trading. The S&P 500 climbed 0.78% to end the session at 6,358.91 points. The Nasdaq gained 0.61% to 21,020.02 points, while the Dow Jones Industrial Average rose 1.14% to 45,010.29 points, just short of its December 4 record high close. Volume on U.S. exchanges was relatively heavy, with 19.1 billion shares traded, compared to an average of 17.7 billion shares over the previous 20 sessions. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months. Analysts on average expect S&P 500 companies to report a 7.5% increase in earnings for the second quarter, according to LSEG I/B/E/S. Microsoft (MSFT.O), opens new tab, Nvidia and other technology heavyweights that have seen their valuations soar due to their leadership in AI are expected to drive much of that quarterly earnings growth. Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged over 9% after beating Wall Street's estimates for second-quarter profit and revenue. Texas Instruments (TXN.O), opens new tab tumbled 13% after its quarterly profit forecast pointed to weaker-than-expected demand for its analog chips and underscored tariff-related uncertainty. Texas Instruments' report weighed on other analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab losing between 1% and 4.6%. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool. Advancing issues outnumbered falling ones within the S&P 500 (. opens new tab by a 2.1-to-one ratio. The S&P 500 posted 50 new highs and 2 new lows; the Nasdaq recorded 96 new highs and 20 new lows.
Yahoo
23-07-2025
- Business
- Yahoo
Why GE's power spin-off is one of the biggest winners from the AI boom
GE Vernova's (GEV) latest quarter highlights why the power equipment maker is a Wall Street favorite. Shares of the Cambridge, Mass.-based company rallied 15% on Wednesday after orders for gas turbines and other equipment jumped in the second quarter — thanks to the AI-boom build-out of data centers, which have fueled electricity demand. GE Vernova posted adjusted earnings of $1.78 per share, versus estimates of $1.55. Revenue also came in above expectations at $9.11 billion, topping estimates of $8.8 billion. 'We've already received almost $500 million in orders in the first half of 2025 versus $600 million in full year 2024, so this growth market continues to accelerate,' CEO Scott Strazik told analysts during the company's earnings call. He highlighted "strong demand" from data centers. Alongside strength in gas services, steam services orders, which support nuclear, rose 30% during the quarter. Nuclear power is another key electricity source for hyperscalers, such as Amazon (AMZN), Microsoft (MSFT), Google (GOOG), and Meta (META), which are looking for all and any power sources to fuel AI growth. The so-called Big Tech hyperscalers, large tech companies operating cloud and AI data centers around the world, have said they will spend a cumulative $325 billion in 2025 as they rush to build out infrastructure. Wall Street sees GE Vernova's backlogs, or orders that have been placed, as a big beneficiary of the data center trend. 'We believe GEV's expanded equipment and services backlog, which grew over $14B Y/Y to $128.7B, supports long-term sales visibility and improves our confidence in the company's margin and EPS growth potential,' CFRA Research analyst Daniel Rich said Wednesday. Read more about GE Vernova's stock moves and today's market action. Since spinning out of GE (GE) in April 2024, GE Vernova has positioned itself at the intersection of data centers, AI, and rising power demand. One Wall Street analyst dubbed the company the "supermarket" for the electric power industry, offering everything from natural gas turbines for generating electricity to power plant and grid modernization services to wind turbine construction. The company is also expanding its footprint in electrical grid software. Earlier this week, GE Vernova announced plans to acquire France-based AI tools startup Alteia. 'With this acquisition, we are buying an existing partner that uses AI and visualization technologies to help our customers manage and orchestrate the grid,' Strazik said during the earnings call, referring to the move as 'another important step forward for our electrification software business.' GE Vernova is third-best performer in the S&P 500 (^GSPC), up roughly 85% year to date, and ranks sixth among components in the Industrial Sector ETF (XLI), which has led the broader market this year. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
GE Aerospace Q2 Earnings & Revenues Beat Estimates, Increase Y/Y
GE Aerospace GE reported second-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric. Inside GE's Headlines The company's second-quarter adjusted earnings were $1.66 per share, which beat the Zacks Consensus Estimate of $1.43. The bottom line surged 38% year over revenues were $11 billion, indicating a year-over-year increase of 21%. Total orders grew 27% on a year-over-year basis to $14.2 revenues were $10.2 billion, marking a year-over-year increase of 23%. The metric beat the consensus estimate of $9.7 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) GE Aerospace Price, Consensus and EPS Surprise GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote GE's Segmental Discussion Revenues from the company's Commercial Engines & Services business jumped 30% year over year to $7.99 billion. The Zacks Consensus Estimate for the business' revenues was pegged at $7.43 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 28% year over year to $11.7 Defense & Propulsion Technologies segment's revenues totaled $2.56 billion, up 7% year over year. The Zacks Consensus Estimate for the segment's revenues was pegged at $2.57 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment increased 24% year over year to $2.9 billion. GE's Margin Profile GE Aerospace's cost of sales (comprising costs of equipment and services sold) surged 22.8% year over year at $6.85 billion. Selling, general and administrative expenses increased 10.4% year over year to $1.02 billion. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 19.7%.GE Aerospace's operating profit (non-GAAP) was $2.3 billion, up 23% year over year. The margin was 23%, down 10 basis points. GE Aerospace's Balance Sheet & Cash Flow Exiting the second quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $10.9 billion compared with $13.6 billion at the end of December 2024. The company's long-term borrowings were $17 billion compared with $17.2 billion at the end of December the second quarter, the adjusted free cash flow was $2.1 billion compared with $1.1 billion in the year-ago the same quarter, GE rewarded its shareholders with a dividend payment of $0.4 billion. The company repurchased shares for approximately $1.7 billion during the same period. GE's Outlook For 2025, GE expects adjusted revenues to grow in the mid-teens range from the year-ago period's actual. Operating profit is estimated to be in the band of $8.2-$8.5 billion. Adjusted earnings are predicted to be in the range of $5.60-$5.80 per share. The free cash flow is anticipated to be in the band of $6.5-$6.9 billion, with the conversion rate projected to be more than 100%.GE Aerospace expects the Commercial Engines & Services segment's revenues to grow in the high-teens range, whereas operating profit is anticipated to be in the band of $8.0-$8.2 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid to high-single-digit range, whereas operating profit is anticipated to be in the band of $1.1-$1.3 billion. Zacks Rank and Other Stocks to Consider The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks other top-ranked stocks from the same space are discussed below: Huntington Ingalls Industries HII presently sports a Zacks Rank of 1. HII's earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 4.2%. In the past 60 days, the Zacks Consensus Estimate for Huntington Ingalls' 2025 earnings has increased 0.8%.Howmet Aerospace HWM currently carries a Zacks Rank of 2. HWM has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 8.8%. In the past 60 days, the Zacks Consensus Estimate for Howmet Aerospace's 2025 earnings has increased 0.9%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
