General Electric's Lower Guidance Overshadows Q2 Beat

Phillip Butler
July 22, 2017

Revenue fell 12% to $29.56 billion.

General Electric shares gyrated Friday after the company reported earnings that beat Wall Street's expectations but reported a 12 percent drop in revenue.

GE improved its cash flow and ramped up cost-cutting efforts - two areas of investor focus - in Chief Executive Jeff Immelt's last quarter at the helm.

While the company reaffirmed its full-year guidance for cash flow, profit, revenue and operating margin, it did not update its 2018 outlook.

Share prices were down as much as 5 percent after GE's earnings statement.

Shares of GE were up more than 1 percent in premarket immediately after the announcement, then fell slightly to trade little changed. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that".


The former head of GE Healthcare, Flannery outlined the review he's undertaking when his promotion to the company's top job was announced in mid-June. He acquired power assets from France's Alstom, merged GE's oil and gas business with Baker Hughes, and moved the headquarters to Boston.

The company reported cash flow from operations of $3.6 billion, a 67% decline from a year earlier.

25 cents; down from 51 cents in last year's second quarter. Excluding non-recurring items, adjusted earnings per share came to 28 cents, beating the FactSet consensus of 25 cents.

In all, GE's second-quarter earnings fell less than expected. During its second quarter, GE cut $593 million in costs and said it was on track to meet its $1 billion savings goal.

By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia CommonsGeneral Electric Q2 2017 earnings amounted to 13 cents per share on a net basis, marking a 57% year over year decline.

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