GE Vernova (GEV.US) earnings report led to the collapse of Siemens Energy (SMEGF.US), and Komo showed strength: there is no basis for following the decline!

The Zhitong Finance App learned that in Wednesday's trading, Siemens Energy (SMEGF.US) followed the decline of its peer GE Vernova (GEV.US), and its stock price fell by more than 5%. Gas turbine manufacturer GE Vernova announced its second-quarter earnings report on the same day, but both core profit and full-year revenue guidance fell short of market expectations. In response, J.P. Morgan published a strong research report.

According to data released by GE Vernova on July 23, EST, revenue for the second quarter increased 22% year-on-year to US$11.1 billion, raising annual revenue and free cash flow guidelines. Revenue is expected to reach 45.5 billion to 46.5 billion US dollars in 2026. However, the adjusted EPS for the second quarter was $2.47, lower than market expectations of $3.01.

After announcing earnings, GE Vernova's stock price fell sharply, closing down more than 8%. Siemens Energy also fell, closing down 4.8%.

Analysts at J.P. Morgan Chase pointed out that investors in Siemens Energy are worried about whether the order announced by GE Vernova is binding after announcing its results, but the corresponding sharp drop in Siemens Energy's stock price is unreasonable.

Analysts believe that there is no basis for simply mapping GE Vernova's performance to Siemens Energy because the latter focuses more on confirmed orders. Furthermore, GE Vernova's capacity expansion has raised concerns about oversupply in the market, but J.P. Morgan still insists that demand will continue to exceed supply until 2028.

J.P. Morgan Chase said in the research report: “Obviously, demand is still very strong, and at least for now, there is still a serious shortage of supply relative to demand.”

Siemens Energy is scheduled to release the third quarter results on August 5, while the world's largest fan manufacturers VWDRY.US (VWDRY.US) and Woxu Energy (DNNGY.US) will announce financial results the following week.