GE Stock Falls After Company Reports 12% Drop in Revenue

Janie Parker
July 22, 2017

Revenue fell 12 per cent to $29.56-billion, slightly above the $29.02-billion consensus estimate of analysts polled by Thomson Reuters I/B/E/S. GE said its appliances sale eliminated $3.1-billion of revenue.

General Electric reported better-than-expected quarterly results, but sales fell 12 percent year over year.

GE shares have dropped 16 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 10 percent.

General Electric Co. shored up its cash performance as Jeffrey Immelt tackled one of investors' most pointed concerns in his final days as chief executive officer.

Operating cash flow from GE's continuing industrial operations, adjusted to exclude deal taxes and pension plan funding, rose from $65 million to $1.47 billion year over year in the quarter.

Today's selloff would mark the eighth straight quarter that GE shares declined on the day earnings results were reported. The shares fell to their lowest level since October 2015.

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In a statement on Friday, Immelt said: "We're looking forward to a smooth transition of the CEO position on August 1, when John Flannery becomes CEO". "People want to get the answers sooner" to Flannery's review.

At GE Power, the world's largest maker of gas turbines, revenue climbed 5 percent.

Estimates: Earnings per share to decline 51% to 25 cents as revenue drops 13.1% to $29.12 billion, according to Zacks Investment Research.

Flannery, who´s career with GE spans three decades has latterly been charged with running the company´s healthcare arm.

Net profit sagged 58% to $1.34 billion, or 15 cents per share, from $3.30 billion, or 36 cents per share, in the comparable quarter of 2016.

GE has cut $670-million in industrial overhead costs this year, Immelt said, and will "meet or exceed" its $1-billion target for 2017 - a goal set after discussion with activist investor Trian Fund Management.

Other reports by TheDailyFarc

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