Categories Earnings, LATEST, Technology, U.S. Markets News
General Electric posts adjusted EPS of $0.19 for Q2; beats estimates
Industrial conglomerate General Electric (GE) reported its second-quarter earnings before the bell today. The company reported a beat on revenue and earnings estimates, reporting an adjusted EPS of $0.19 per share, down 10% year-over-year on revenue of $30.1 billion, up 3%. Analysts had expected GE to report adjusted earnings of $0.17 per share on revenue of about $29.39 billion. On a reported basis, profit came in at $615 million or $0.08 per share, declining 30% and 33% respectively.
“The second quarter was in line with expectations, and we saw continued strength across many of our segments, especially in Aviation and Healthcare. We expect the power market to remain challenging, and we continue our focus on operational improvement. Our adjusted Industrial free cash flows improved in the first half year over year, and we plan to end 2018 with more than $15 billion of cash,” said John Flannery, CEO.
Related: General Electric earnings preview: Investors are stoic!
The results, though better than what analysts expected, were impacted by weakness in the Power segment which declined 26% year-over-year. In May GE disclosed that it’s anticipating no profit growth in the Power segment, which pushed its shares down further at that time. Also, last month GE was moved out of the Dow Jones Industrial Average index, after being a part of it for more than a century.
RELATED: General Electric knocked out of Dow 30 Index
On a segment basis, the company reported revenue declines in four of its segments including power, renewable energy, transportation and lighting. In the power segment, GE said it is continuing to focus on right-sizing footprint and structural cost and maximizing the value of the segment’s installed base. However, oil and gas, aviation, and healthcare posted high single digit to double digit growth in revenue for the quarter.
Related: General Electric Q1 earnings
The Boston, Massachusetts-based industrial behemoth, despite the weakness in its power business, reaffirmed its outlook for 2018, with adjusted EPS still expected in the range of $1.00-$1.07.
GE revealed in the release that on its initiatives on simplifying its complex business structure through its restructuring initiatives, it is progressing well on its plans. The company also added that it closed on the Industrial Solutions and Value-Based Care transactions and announced plans to separate GE Healthcare into a standalone company over 12 to 18 months.
GE stock has not seen any positives for a couple of years now and has been heading south through the year, plunging more than 48% in the last one year. After the company announced its earnings report, stock rose more than 2.5% during pre-market trading.
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