From Al Root at Barron's, October 28:
GE Vernova Orders Soar. Earnings Reveal That AI Power Demand Remains Red Hot.
GE Vernova reported better-than-expected third-quarter results and raised financial guidance. Investors will wait to see if another strong quarter is enough to overcome recent fears.
GE Vernova on Wedneasday reported earnings before interest, taxes, depreciation, and amortization (Ebitda) of $1.9 billion and earnings per share of $4.81 from sales of $12.6 billion. Wall Street was looking for $1.7 billion, $4.01 and $12 billion, respectively. A year ago, GE Vernova reported Ebitda of $800 million and EPS of $1.68 from sales of $10 billion.
Sales and earnings grew and topped analysts’ projections. New orders rose 96% year over year to $29 billion, blowing away expectations. BofA analyst Andrew Obin expected orders of $21 billion, up 44% year over year. Orders have far outpaced sales for several quarters as hyperscalers scramble for power to run AI data centers.
For 2026, GE Vernova now expects sales of about $47 billion and Ebitda of about $6.6 billion. Prior guidance expected about $46 billion and $6 billion, respectively....
....MUCH MORE
We'll have more after the conference call. At the moment the stock is up $16.49 (+1.84%) adding to yesterday's $40.46 (+4.73%) gain. $912.01 last.
It's a tough-to-please crowd, we'll see how they react.
