GE Vernova Inc. Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for GE Vernova Inc. (NYSE:GEV) shareholders, with its shares surging 12% to US$438 in the week since its latest yearly results. Revenues were in line with forecasts, at US$35b, although statutory earnings per share came in 15% below what the analysts expected, at US$5.58 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for GE Vernova

Taking into account the latest results, the current consensus from GE Vernova's 25 analysts is for revenues of US$36.7b in 2025. This would reflect a reasonable 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 22% to US$6.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$36.9b and earnings per share (EPS) of US$7.16 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to US$409, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values GE Vernova at US$500 per share, while the most bearish prices it at US$245. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting GE Vernova's growth to accelerate, with the forecast 5.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.1% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.6% per year. So it's clear that despite the acceleration in growth, GE Vernova is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GE Vernova. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for GE Vernova going out to 2027, and you can see them free on our platform here.

You can also see our analysis of GE Vernova's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.