General Electric Co. (GE) revealed on Tuesday its plans to spin off its GE Vernova business and introduce GE Aerospace, scheduled to take place at the beginning of the second quarter of 2024. As a result, the aerospace, power, and renewable energy company observed a notable surge of 6.6% in their stock in premarket trading, reaching a one-month high. Furthermore, the company exceeded expectations for both profit and revenue in the third quarter and subsequently increased its full-year outlook.
The Spinoff: GE Vernova
Upon the completion of the spinoff for GE Vernova, which combines GE’s renewable energy and power businesses, the company plans to list on the New York Stock Exchange (NYSE) using the ticker symbol “GEV.”
Introduction of GE Aerospace
Meanwhile, GE Aerospace will continue to be listed on the NYSE using its current ticker symbol “GE.” This strategic move by General Electric Co. emphasizes their dedication to advancements in aerospace technology.
GE Healthcare Technologies Inc.
It is important to mention that GE’s healthcare business, GE Healthcare Technologies Inc. (GEHC), was spun off earlier this year in 2023.
Despite a slight decline of 3.2% in the past three months through Monday, General Electric Co.’s latest developments have generated considerable excitement among investors. In comparison, the broader market, represented by the S&P 500 (SPX), experienced a 7.4% decrease during this same period.