Moody's Corporation, General Electric Company Q2 2017 Earnings

Steve Phelps
July 22, 2017

The conglomerate reported an expectedly hard report to analyze. This was on revenues of $29.6 billion.

By Moody's Corporation (Moody's Corporation) [Public domain], via Wikimedia CommonsMoody's Q2 2017 earnings amounted to $1.61 per share on a GAAP basis, compared to $1.30 per share in the year-ago quarter. Revenue fell 12% to $29.56 billion, but was above the FactSet consensus of $29.14 billion.

The Dow Jones fell 0.4% to 21,518.47 and the wider S&P 500 index dropped 0.3% to 2,465.7.

In the second quarter, oil and gas once again was a drag, with profit falling more than 50%.

The drop in yearly revenue happened due to GE's energy connections business offset strength in renewables and power units.

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The oil and gas division of the company, however, posted revenue of $3.1 billion, a 3 percent decline from the same time a year ago.

While the company reaffirmed its full-year guidance for cash flow, profit, revenue and operating margin, it did not update its 2018 outlook. GE also saw its net profit slump 58 percent year over year. Of that total $242.6 billion is services backlog and $84.2 billion is equipment. During its second quarter, GE cut $593 million in costs and said it was on track to meet its $1 billion savings goal.

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.

Still, the Boston-based industrial conglomerate beat Wall Street expectations as longtime chief executive Jeff Immelt prepares to hand over the reins to John Flannery in August. CFO Jeffrey Bornstein sees FY 2017 EPS trending toward the lower-end of its previously stated $1.60-$1.70 range.

Results: EPS rose to $1.80 as revenue unexpectedly climbed 1% to $10.09 billion.

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