General Electric reported second-quarter profits that fell 30 percent from last year because weakness in its power division. Shares however rose over 2 percent in early trading as the profit beat Wall Street expectations.
GE reaffirmed its financial outlook for the year, saying it continues to expect full-year earnings $1 per share to $1.07 per share.
Earnings in the latest period were fueled by GE's aviation and healthcare businesses, while the company said its power market continues to be challenging, with orders down 26 percent from the same period last year.
CEO John Flannery said in a statement that GE's review of its businesses is "now complete."
"GE is moving forward to implement the strategy and structure we laid out in June," Flannery said.
Here’s how the company did compared with what Wall Street expected:
Earnings: 19 cents per share vs. 17 cents per share forecast by Thomson Reuters.Revenue: $30.1 billion vs. $29.31 billion forecast by Thomson Reuters.Wall Street calls for either a suspension or a cut to GE's dividend put pressure on the stock in the second quarter. While CEO John Flannery said in May that he would "have to see how this plays" out before deciding whether to make a change to the dividend in 2019, GE said on June 26 it would "adjust" the dividend once it completes the spin-off of its healthcare business.
The company revealed in May that it expects no profit growth this year in its already stagnant power business, depressing shares further. GE was also removed as a component in the Dow Jones Industrial Average in June, after being a part of the index for more than 100 years.
GE's deal in May to merge its transportation business with Wabtec was praised by investors, with the $2.9 billion in cash to GE seen as a welcome respite.
