General Electric said that earnings per share in the second quarter fell 30 percent year-over-year due to weakness in the power sector. However, equities rose 1 percent in early trading as earnings outperformed Wall Street expectations.
In the second quarter, the company posted a profit of 7 cents a share, after a gain of 10 cents a year ago. On a continuing basis, GE net income for the most recent period was 8 cents per share after 12 cents per share a year ago.
On an adjusted basis, GE returned 19 cents a share, up 17 cents per share (19659,003) Total revenue increased 3 percent to $ 30.1 billion in the second quarter, more than expected by Thomson Reuters $ 29.31 billion.
GE's aerospace, transportation and health businesses achieved profits growth, continuing to turn stable results. But the conglomerate's electricity and oil and gas units posted gains of 58 percent and 27 percent, respectively, over the previous year. Despite declining profits, earnings for both of the struggling businesses outperformed Wall Street.
Wall Street demands that either the suspension or the curtailment of the GE dividend put the stock under pressure in the second quarter. While CEO John Flannery said in May that he must "see how that plays" before deciding whether to change the 2019 dividend, GE said on June 26 that it would "adjust" the dividend as soon as it turns completed from the health sector.
The company announced in May that it does not expect earnings growth in its already stagnating electricity business this year and continues to push the stock. GE was also eliminated as part of the Dow Jones Industrial Average in June, after being included in the index for more than 100 years.
GE's deal in May to merge its transportation business with Wabtec was praised by investors $ 2.9 billion in cash to GE was considered a welcome respite. The Company expects the merger of Wabtec's transportation business to be completed early in 2019.