Jan 22 (Reuters) - GE Vernova on Wednesday reported a rise in fourth-quarter profit, helped by strong performance in its grid equipment and services segment, but missed its revenue estimates.
The U.S. government has awarded grants and loans worth billions of dollars to utilities to strengthen their grids, benefiting grid equipment firms such as GE Vernova, after some utility firms faced scrutiny for their role in wildfires.
Core profit in the company's electrification segment jumped 68% to $283 million in the quarter from a year earlier.
Overall, its quarterly net income more than doubled to $484 million.
However, the company's quarterly revenue of $10.56 billion was partly impacted by the performance in its wind segment, after the sector was hit by canceled projects and suspended government auctions.
Analysts on average were expecting quarterly revenue of $10.79 billion, according to data compiled by LSEG.
The company's wind segment, which provides wind turbines, blades and services, reported quarterly orders of $2.03 billion, down about 41% from a year ago.
For the current year, GE Vernova expects the wind segment's organic revenue in the mid-single digits and EBITDA losses in the range of $200 million to $400 million.
Shares of the company, which briefly dived over 6% following the results, were trading 1.3% higher at $422 premarket.
"Potential investor enthusiasm from the Stargate announcement after yesterday's close, which could help support the stock this morning," J.P. Morgan analysts said in a note.
U.S. President Donald Trump on Tuesday announced a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the business-critical technology. (Reporting by Tanay Dhumal in Bengaluru; Editing by Shreya Biswas)
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