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.
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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
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