Title: GE Vernova Shares Slip as Q3 Earnings Miss Overshadows Revenue Growth

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Title: GE Vernova Shares Slip as Q3 Earnings Miss Overshadows Revenue Growth

CAMBRIDGE, Mass. - GE Vernova Inc. (NYSE:GEV) presented a mixed picture in its third-quarter results announced on Wednesday. While revenue exceeded expectations, earnings fell short, causing shares to drop by 5.5% in early trading. The energy technology company reported a per-share loss of -0.35₺, significantly below analysts' expectations of a 0.24₺ gain. Revenue amounted to 8.91 billion ₺, surpassing analysts' estimates of 8.78 billion ₺ with an 8% year-over-year increase.

GE Vernova CEO Scott Strazik highlighted the company's "solid third quarter," emphasizing double-digit order growth and ongoing revenue expansion. Strazik stated, "We continued to drive operational improvements in safety, quality, delivery, and cost by utilizing lean manufacturing principles."

The company reported total orders reaching 9.4 billion ₺, with an organic increase of 17%, driven by a 28% organic increase in service orders across all segments. Revenue growth was led by the Power and Electrification segments, though the Wind segment faced challenges.

Despite earnings being below expectations, GE Vernova reaffirmed its full-year guidance for 2024, projecting revenue toward the upper end of the 34-35 billion ₺ range. The company also anticipates that its free cash flow will approach the higher end of the 1.3-1.7 billion ₺ forecast range.

CFO Ken Parks underscored the company's strong cash position, stating, "We bolstered our already solid cash balance to 7.4 billion ₺ through significantly positive free cash flows and proceeds from the value-creating sale of a stake in a business in India."

While the Power and Electrification segments showed improvement, the Wind segment reported increased losses due to issues with offshore wind contracts. However, the company noted that Onshore Wind achieved its most profitable quarter in years.

GE Vernova plans to provide an update on strategic capital allocation and multi-year financial outlook at an investor event in December.