GE Vernova (GEV) reports Q3: everything you need to know ahead of earnings

Energy transition company GE Vernova (NYSE:GEV) will be announcing earnings results this Wednesday before market open. Here’s what you need to know.

GE Vernova beat analysts’ revenue expectations last quarter, reporting revenues of $11.1 billion, up 21.9% year on year. It was a mixed quarter for the company, with full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.

Is GE Vernova a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting GE Vernova’s revenue to grow 20.5% year on year, improving from the 11.8% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. GE Vernova has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at GE Vernova’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Acuity Brands reported revenues up 2.9%, falling short of estimates by 1.1%. Allegion traded up 12.6% following the results while Acuity Brands’s stock price was unchanged.

Read our full analysis of Allegion’s results here and Acuity Brands’s results here.

In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. GE Vernova is down 9.5% during the same time and is heading into earnings with an average analyst price target of $1,224 (compared to the current share price of $859.90).

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