During Wednesday's trading session, Siemens Energy AG (SMEGF.US) shares followed the downward trend of its peer GE Vernova Inc. (GEV.US), declining by over 5%.
The gas turbine manufacturer GE Vernova Inc. released its second-quarter earnings that day, with both core profit and full-year revenue guidance falling short of market expectations.
In response, JPMorgan issued a research report in its defense.
Data released by GE Vernova Inc. on July 23 showed second-quarter revenue increased 22% year-over-year to $11.1 billion, with the company raising its full-year revenue and free cash flow guidance and forecasting 2026 revenue between $45.5 billion and $46.5 billion.
However, adjusted earnings per share for the quarter were $2.47, missing the market consensus of $3.01.
Following the earnings release, GE Vernova Inc. shares plummeted, closing down more than 8%.
Siemens Energy AG shares also fell, closing down 4.8%.
Analyst's Perspective on the Decline
JPMorgan analysts noted that investors in Siemens Energy AG were concerned about the binding nature of its announced orders following GE Vernova Inc.'s results, but argued that the corresponding sharp decline in Siemens Energy AG's share price was not justified.
The analysts believe there is no basis for simply mapping GE Vernova Inc.'s performance onto Siemens Energy AG, as the latter is more focused on its confirmed order book.
Furthermore, while GE Vernova Inc.'s capacity expansion has raised market concerns about oversupply, JPMorgan maintains its view that demand will continue to outstrip supply until at least 2028.
JPMorgan stated in its report: "Clearly, demand remains very strong, and at least for now, supply remains severely constrained relative to demand."
Upcoming Financial Reports
Siemens Energy AG is scheduled to release its third-quarter results on August 5, while the world's largest wind turbine manufacturer, Vestas Wind Systems A/S (VWDRY.US), and Ørsted A/S (DNNGY.US) will report their earnings the following week.
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