Shares in energy company GE Vernova (GEV) took a hit on Wednesday morning following the announcement of an unexpected loss, marking the second unprofitable quarter in three as a standalone company. This former division of General Electric posted a third-quarter revenue of $8.91 billion, falling approximately $10 million short of analysts' projections. Furthermore, the company reported a net loss of $99 million, which, while smaller than the loss reported under the conglomerate the previous year, was significantly below the expected profit of $134.5 million, according to data from Visible Alpha.
Despite losses in its offshore wind business, GE Vernova indicated that margins had improved in other areas, specifically its power and electrification segments. The company maintained its full-year outlook from the second quarter, still anticipating revenue towards the upper end of the $34 billion to $35 billion range. Additionally, it reiterated its projection that its wind segment would be "approaching profitability" by the fiscal year's end.
Analysts maintain a positive long-term outlook for GE Vernova, citing the ongoing global rise in electrical demand, especially for renewable energy, to power energy-intensive projects such as data centers for artificial intelligence (AI). Despite a drop of 3% an hour ahead of the opening bell on Wednesday, GE Vernova shares remain almost 90% above their initial trading value following their spinoff from GE Aerospace in April.