logo-loader

General Electric shares spring after 2Q earnings beat Street on better than expected revenue

Last updated: 11:33 20 Jul 2018 EDT, First published: 07:42 20 Jul 2018 EDT

General Electric
The aviation sector was a bright spot for the company, while the power division was weak

Industrial giant General Electric Company (NYSE:GE) which has had a tough go over the past several years amid a long-running restructuring and turnaround effort demonstrated Friday that the changes were paying off by posting second quarter earnings that topped Wall Street expectations.

The company said second-quarter profits fell 30% from last year because of weakness in its power division. GE stock, however, climbed 1.24% in premarket trading as earnings still beat analysts' expectations on both EPS and revenue. Later shares lagged 3.53% to US$13.24 in New York.

For the quarter ended June 2018, General Electric reported earnings of US$0.19 per share on revenue of US$30.1bn. The consensus earnings estimate was US$0.18 per share on revenue of US$29.7bn.

READ: GE loses coveted spot on Dow index to Walgreens

The most recent turnaround steps GE has announced were plans to spin-off their healthcare unit as a standalone company and fully separate Baker Hughes (BGHE).

CEO John Flannery said in a statement that GE's review of its businesses is "now complete."

"GE is moving forward to implement the strategy and structure we laid out in June," Flannery said.

Strong outlook

GE reaffirmed its financial outlook for the year, saying it continues to expect full-year earnings of $1 per share to $1.07 per share.

Contact Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive

Xeris Biopharma Surpasses 2023 Expectations with Strategic Moves Poised for...

Xeris Biopharma CEO Paul Edick joined Steve Darling from Proactive to share news the company had a successful 2023, with a final tally of 164 million USD, which is at the upper end of their forecast. The company concluded the year with 72 million USD in cash, surpassing their initial projections...

8 hours, 37 minutes ago