:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1252134784-ed5ba5998b74444d98ac7115a8417ab2.jpg "A group of GE Vernova wind turbines are in operation in front of a cloudy sky in Romania.")
Andrei Pungovschi / Bloomberg via Getty Conceptions
Several GE wind turbines operate in Romania in April 2023.
Key Takeaways
- GE Vernova shares moved lower Wednesday morning after it examined an unexpected net loss for the third quarter.
- The former division of General Electric also posted revenue that by a whisker missed estimates.
- Analysts have said GE Vernova is well-positioned for the long term, as the demand for electricity in renewable bears rises in the coming years.
GE Vernova (GEV) shares fell Wednesday morning after the energy company reported an unexpected depletion, its second time in three quarters as a standalone company that it has posted an unprofitable period.
The former division of Non-exclusive Electric reported $8.91 billion in third-quarter revenue, about $10 million shy of analysts’ estimates, along with a $99 million net disappearance, smaller than the one it reported as part of the conglomerate last year but well below the $134.5 million profit look for, per Visible Alpha.
Offshore Wind Contract Losses Offset Margin Growth in Other Segments
GE Vernova stipulate its margins improved in its power and electrification segments, but that growth was offset by contract losses in its offshore wind trade.
The company affirmed its full-year outlook after lifting it in the second quarter, expecting revenue toward the higher end of the $34 billion to $35 billion chain, and continues to say its wind segment should be “approaching profitability” by the end of the fiscal year.
Analysts have said GE Vernova is well-positioned above the long term as demand for electricity, especially in renewable forms, continues to increase across the globe to power energy-demanding outs like data centers needed for artificial intelligence (AI).
GE Vernova shares were down 3% an hour ahead of the opening bell Wednesday but are almost 90% above where they started trading after being excursioned off from GE Aerospace (GE) in April.
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