GE Vernova's Strong Orders And Prolec Deal Signal Major Growth: Analyst

Core Insights - GE Vernova Inc. reported a strong third quarter with a 55% organic increase in orders and announced the acquisition of full ownership of Prolec GE, enhancing its position in North America's transformer market [1][4] - The company reported GAAP earnings per share of $1.64, which was below the consensus estimate of $1.92, while total revenue reached $9.969 billion, exceeding the forecast of $9.158 billion [2] - GE Vernova reaffirmed its full-year 2025 guidance, expecting revenue to be at the higher end of the $36.0–$37.0 billion range, slightly below the $37.186 billion consensus estimate [3] Earnings Results - GAAP earnings per share were reported at $1.64, missing the consensus estimate of $1.92 [2] - Total revenue for the quarter was $9.969 billion, surpassing the forecast of $9.158 billion [2] Analyst View - The quarterly results were characterized as solid, with strong organic order growth [4] - The acquisition of the remaining 50% stake in Prolec GE for $5.275 billion is viewed positively, priced at 13.9x 2025 EV/EBITDA [4] - Management estimates the acquisition will add $600 million to 2026 EBITDA and generate $60 million-$120 million in cost synergies by 2028 [5] Analyst Estimates - The adjusted EBITDA forecast for 2025 is maintained at $3.5 billion, reflecting a 74% year-over-year increase, above the $3.4 billion consensus [6] - The analyst estimates a 7% year-over-year organic revenue growth and a margin expansion of 360 basis points for 2025 [6] - For 2026, the adjusted EBITDA estimate is reiterated at $5.5 billion, above the consensus of $5.2 billion [6] Other Price Forecast Changes - Citigroup's Andrew Kaplowitz maintained a Neutral rating but lowered the price forecast from $670 to $658 [7] - Barclays' Julian Mitchell kept an Overweight rating and increased the price forecast from $706 to $710 [7] - BMO Capital's Ameet Thakkar retained an Outperform rating while raising the price forecast from $690 to $710 [7] Price Action - GEV shares were trading higher by 3.32% to $595.10 at the last check [8]