GE Vernova's stock reverses toward new highs after an update on profitability

By Tomi Kilgore

Shares were down as much as 4.5% intraday before pulling a U-turn, as full-year financial guidance was affirmed

Shares of GE Vernova Inc. pulled an intraday U-turn to trade at fresh highs on Thursday, after the renewable-energy company trimmed its outlook for third-quarter profitability but affirmed its full-year outlook.

The company said that its wind business, which has been the "most challenging" of its business segments, is expected to be "modestly profitable" in the fourth quarter.

The stock (GEV) climbed 2.7% in morning trading, toward its highest close since GE Vernova became an independent company. The spinoff from the former General Electric, now GE Aerospace, was completed on April 2.

The stock had initially dropped by as much as 4.5% at its intraday low of $199.65, which was hit just after the opening bell at 9:30 a.m. Eastern time.

The company said it now expects adjusted earnings before interest, taxes, depreciation and amortization to be "relatively flat." In the company's second-quarter earnings call with analysts on July 24, the company had said it expected "stronger" adjusted Ebitda year over year but that it was expected to decline sequentially.

For the wind business, the company said Thursday that it expects an Ebitda loss of about $300 million, given additional costs in offshore wind. In July, the company said it expected Ebitda to improve and approach profitability this year.

GE Vernova also affirmed its full-year 2024 guidance, with revenue trending toward the higher end of the $34 billion to $35 billion range.

The stock has soared 21.1% over the past three months. In comparison, GE Aerospace's stock (GE) has tacked on 5.3% over the past three months and the S&P 500 has edged up 2.6%.

-Tomi Kilgore

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09-12-24 1142ET

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