Why General Electric Earnings Won't Move the Needle Much

Intraday Movers: General Electric Company (NYSE:GE), CSX Corporation (NASDAQ:CSX)

United States industrial giant General Electric reported net profits of $1.34bn for the second quarter of 2017, 53% less than its earnings for the same quarter in 2016.

In the second quarter, oil and gas once again was a drag, with profit falling more than 50%.

In the second quarter, Earnings per Share came in at 28 cents, as opposed to expectations of 25 cents. Its diluted earnings per share (EPS) was $0.15 from operations, but the adjusted earnings was reported as $0.28 per share.

Energy connections revenue fell 27% to $3.21 billion and renewable energy revenues were up 17% to $3.11 billion.

Net income was $1.2bn, down 57% from the year-ago period. Oil and gas revenue fell 3% to $3.11 billion but was above the FactSet consensus of $2.93 billion and power revenue increased 5% to $6.97 billion to beat expectations of $6.64 billion, but flat aviation revenue of $6.53 billion missed expectations of $6.70 billion.

It affirmed its full-year forecast for cash flow, profit, revenue and operating margin. Sales dropped 12 percent to $29.6 billion, compared with $29.2 billion expected by analysts. GE under the agreement divested from its water and process technology unit, part of a remedy for the merger announced a year ago.

With oil prices having fallen from $53 to $48 per barrel over the second quarter, GE warned of weaker full-year trading from its unit that serves the oil & gas industry.

GE has been under intense pressure to cut expenses and pledged in March to cut $1 billion in annual industrial expenses for each of the next two years, which is twice the level of cuts originally laid out.

We expect cash flow to continue to improve throughout the year.

Last month, GE said Immelt would step down effective August 1, after 16 years as the CEO.

Stock: Honeywell stock fell 0.5% in premarket action.

Meanwhile, the dollar was down 0.2% versus the euro at 0.8583 as traders bet that the European Central Bank will start tapering asset purchases next year, despite dovish comments from Mario Draghi on Thursday. Six-month revenue of $4.5 billion from renewable energy was up 20 percent from previous year.

Related News:



Most liked

Princess Charlotte shows impeccable manners with a curtsy on royal tour
Princess Charlotte stumbled and fell on a visit with her brother and parents to a plane factory in Germany . Kate Middleton dropped a baby bombshell upon receiving gifts at "The Heart".

When Released, OJ Plans to Visit Nicole's Grave, Friend Says
Simpson's daughter, Arnell, testified on her father's behalf, saying, "We just want him to come home". She said the decision to grant Simpson parole demonstrated a need for legal reforms.

Bank of America picks Dublin for European Union hub
He said the announcement was "a strong endorsement of Ireland's attractiveness as a location for investment". It is the first U.S. bank to confirm the Irish capital as its preferred site.

DiNardo claims to have killed two more
Commissioner Richard Ross spoke to Action News on Tuesday morning. "We would be remiss if we didn't investigate further". But, Ross said, the task is proving to be hard because they do not have dates, times or exact locations.

House GOP Releases $1.132T Budget Plan for Fiscal Year 2018
But to push a Republican-only approach through Congress , the GOP first has to get a budget resolution through the Congress . The budget also stipulates that such a bill should repeal the alternative minimum tax and reduces the corporate tax rate.

Celtic's Leigh Griffiths charged by Uefa with 'provoking spectators' after Linfield game
Hosts Linfield were charged on that occasion for objects being thrown from the crowd and a field invasion by supporters. This case will be dealt with by the UEFA Control, Ethics and Disciplinary Body on July 20.

US Fines Exxon $2 Million Over Russia Sanctions Breaches
Sechin is the CEO of Russian state oil giant Rosneft and a close ally of Russian President Vladimir Putin . The State Department referred questions about the fine to ExxonMobil and the Treasury.

Elon Musk says NY-DC Hyperloop has government approval
But the New York-DC hyperloop could also be the first major project for Musk's tunnel-digging company, The Boring Company . Musk is best known for his electric auto company Tesla and his space venture SpaceX , as well as co-founding PayPal.

Dude, looks like Caitlyn Jenner and Steven Tyler might record a duet
A few years ago Caitlyn went into isolation and thus began her transition as privately as she could manage at the time. The 49-year-old host lives across the street from Caitlyn's daughter, Kendall Jenner .

R. Kelly: A History Of Charges, Lawsuits, & Scandals
Kelly , the "Pied Piper of R&B", is back in the news. "My daughter is severely brainwashed", mother Jonjelyn Savage said. Timothy previously told TMZ she was withholding her whereabouts because she isn't "allowed" to share that information.

'Kill the Bill' and 'People's Filibuster' to Protest Health Bill
Asked about his reaction to Lee and Moran opposing the bill, Trump said they had their own reasons. Shelley Moore Capito, a West Virginia Republican, announced her opposition to repeal only plan.

Bad news for Man United & Ivan Perisic
Respected journalist, Miguel Delaney, the Independent Chief Football writer, stated on Sunday that a deal was imminent. And was then named in Inter's squad for their trip to China, where they will play four matches.

Tour de France Stage 16: Trouble for Team Quick-Step
Also, we sit down with American rider Taylor Phinney (Cannondale-Drapac) to hear his thoughts on life in the peloton. I didn't change my line, I sprinted in a straight line. "I'm feeling great coming into the last week of the race".

Ed Sheeran on Game of Thrones Has Caused a Twitter Storm
Below, Sheeran plays "Teddy", a a singer who the character Marilyn Chambers (played by Emily Symons) knew in his childhood. Before he deleted his account , Sheeran had already soured on the idea of Twitter and social media a couple of times .

Tekken 7's Next Add-On Character is Geese Howard
No specific release date was given for Geese in Tekken 7 , however, we can expect him to become available sometime this Winter. Meanwhile many Tekken alums are still missing from the roster, including Julia, Ganryu, Anna, Baek, and even Zafina.