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Highly anticipated GE Vernova earnings for the second quarter are on deck early Wednesday. On Tuesday, Vernova stock ended roughly flat near buy points.
GE VernovaGEV confirmed in June that its massive, heavy-duty gas turbines are basically sold out through 2029. Big Tech companies aggressively purchased the gas turbines to power their artificial-intelligence (AI) data-center campuses by themselves, with regionals grids unable to meet massive electricity demand.
Analysts are watching Vernova's $163 billion backlog, especially for gas turbines. The turbine backlog alone is on track to reach $110 billion by the end of 2026. The integration of Prolec, a new transformer acquisition, as well as Prolec's backlog contribution, are also under watch.
Right now, backlog conversion (into recognized revenue) matters more than orders. Wall Street's main concern has shifted significantly from demand to execution.
GE Vernova Earnings
For Q2, analysts anticipate GE Vernova earnings per share of $3.18, jumping 71% year on year. They see revenue of $10.79 billion, an 18.4% increase, according to FactSet. That would mark the third straight quarter of accelerating sales growth.
Analysts expect backlog to climb 30% vs. a year earlier to more than $167 billion from Q1's $163 billion.
GEV Stock Near Buy Points
Shares of GE Vernova were roughly unchanged in Tuesday's stock market trading, at 1,079.03.
GEV stock failed a recent breakout attempt but has bounced off the 50-day line. A move above the July 6 high at 1,195.94 would offer a buy point, the MarketSurge chart shows.
Also, aggressive traders could have used Monday's move above the 21-day moving average, and a short trendline, as an early entry. But that's risky with earnings due on Wednesday.
GE Vernova stock does have a recent history of gapping up on earnings, then pulling back over the next several days or weeks.
An 89 RS Rating, out of a best-possible 99, points to GEV stock's outperformance over the past year. The huge AI winner soared 93% over this period.
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More Room For Huge AI Winner To Run?
GE Vernova's rivals in the gas-turbine market include Siemens EnergySMERY. Challengers in the transformer market include EatonETN. Besides AI data centers, their products enjoy higher demand from bitcoin mining and grid modernization.
Ahead of Vernova earnings, Deutsche Bank analysts on Friday hiked their price target to $1,309, among the highest on Wall Street. The firm reportedly cited multiyear pricing power in a supply-constrained market, as well as massive scaling of free cash flow.
On Monday, Guggenheim analysts maintained a $1,300 target on GEV stock. They highlighted the rotation out of software tech stocks and into the AI energy landscape.
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