Moody's Corporation, General Electric Company Q2 2017 Earnings

General Electric Earnings Preview What Might Be Expected For Q2 Results

General Electric Earnings Preview What Might Be Expected For Q2 Results

USA markets opened lower on Friday, weighed down by weaker-than-expected earnings from General Electric.

GE forecast full-year earnings to fall 51% versus 2016 against the slump in its oil & gas unit.

Going the other way, eBay fell in pre-market trade after its second-quarter sales and earnings came in as expected.

Shares of Dow component GE slipped 0.1% to $26.67.

The oil and gas division of the company, however, posted revenue of $3.1 billion, a 3 percent decline from the same time previous year. Revenue fell 11.8% to $29.6bn.

By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia CommonsGeneral Electric Q2 2017 earnings amounted to 13 cents per share on a net basis, marking a 57% year over year decline. Organic industrial revenue rose 2%.

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.

GE also noted that its backlog during the quarter rose 2% year over year to $326.8 billion.

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.

Immelt said the company would be able to navigate through a market where crude oil prices are suppressing spending in some exploration and production sectors because of the global scale of GE's portfolio.

In June, GE announced that Immelt would step down as CEO on August 1, to be replaced by longtime executive John Flannery. The stock trended lower leading up to the post-results conference call (http://www.marketwatch.com/story/ges-stock-turns-sharply-lower-after-ceo-immelt-gives-downbeat-outlook-on-conference-call-2017-07-21), with the stock down 0.9% just before the call started.

The stock is now trading at $26.70 per share, floating in a range of $26.67 to $27.05.

Analyst Jim Corridore at CFRA, which acquired S&P Global's equity and fund-research business a year ago, followed by downgrading GE to hold from buy, and by cutting his stock price target to $27 from $36.

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