Why GE Vernova Investors Should Ignore the Wind

Shares of GE Vernova (NYSE: GEV) fell roughly 6% on Wednesday after the company released its second-quarter earnings. While earnings per share missed Wall Street's expectations and the wind segment dragged down performance, investors are overlooking results that contained significant positive news. Revenue grew 22% while orders skyrocketed 88% to $24.2 billion. As a result, GE Vernova's backlog reached a record $176 billion. Free cash flow also increased to $5.1 billion. The company's management raised its full-year guidance on both revenue and free cash flow. The wind segment's revenue decreased 10%, with orders falling another 40%. Wind is expected to lose GE Vernova about $400 million this year. Weak demand, rising expenses, and tariffs are the main culprits. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool