GE Vernova's financial report led to the collapse of Siemens Energy, but JP Morgan stepped in to support: the decline is unfounded!

In Wednesday's trading, Siemens Energy (SMEGF.US) followed its counterpart GE Vernova (GEV.US) in a downward trend, with its stock price falling over 5%. Gas turbine manufacturer GE Vernova announced its second quarter financial report on the same day, but both core profit and full-year revenue guidance fell short of market expectations. In response to this, J.P. Morgan released a research report supporting GE Vernova. Data released by GE Vernova on July 23rd showed a 22% year-on-year increase in second quarter revenue to $11 billion, with an upward revision of full-year revenue and free cash flow guidance, expecting revenue to reach $45.5 billion to $46.5 billion in 2026. However, the adjusted EPS for the second quarter was $2.47, lower than the market's expected $3.01. After announcing the financial report, GE Vernova's stock price plummeted, closing down over 8%. Siemens Energy also fell, with a 4.8% decline. J.P. Morgan analysts pointed out that investors in Siemens Energy are concerned about whether the orders announced by GE Vernova after its performance announcement are binding, but the corresponding significant drop in Siemens Energy's stock price is not justified. The analysts believe that it is unfounded to simply map GE Vernova's performance to Siemens Energy, as the latter focuses more on confirmed orders. In addition, market concerns about supply glut due to GE Vernova's capacity expansion are raised, but J.P. Morgan continues to believe that demand will exceed supply until 2028. In the research report, J.P. Morgan stated, "Clearly, demand remains very strong, and at least for now, supply relative to demand is still severely inadequate." Siemens Energy is scheduled to release its third quarter performance on August 5th, while the world's largest wind turbine manufacturer Vestas (VWDRY.US) and Dongfang Electric (DNNGY.US) will announce their financial reports in the following week.