General Electric Co. (NYSE: GE) shares fell sharply by over 8 percent during pre-market hours on Friday after the company had missed its third quarter estimates for fiscal year 2017.
GE reported revenue of $33.5 billion, 14 percent increase year over year, and beating analysts’ estimates by a huge margin of $910 million. Although revenue was outstanding compared to estimates, quarterly profits fell short. GE reported an EPS of $0.29 or profit of $2.6 billion, but EPS fell short of analysts’ estimates by $0.20, and showing a 9 percent decrease year over year.
Notably, that contributed to the earnings decline was the power sector of the company. GE reported a net income of $611 million for the power sector, which is down 51 percent quarter over quarter from $1.3 billion.
Transportation also reported an 11 percent decline in profit quarter over quarter. Oil and gas sector of the company is now down 67 percent for the fiscal year. Lighting is down 78 percent for the fiscal year.
“This was a very challenging quarter. While a majority of our businesses had solid earnings performance, this was offset by a decline in Power performance in a difficult market.” said General Electric CEO, John Flannery.
“Our Industrial CFOA (cash for operating activities) for the quarter was down principally because of lower Power volume, resulting in lower earnings and higher inventory. We believe that the new leadership team at Power and the cost actions that we are taking will better position the Company in 2018 and beyond.” added Flannery.
GE has now cut its full year EPS guidance to $1.05 to $1.10 per share compared to the consensus estimates of $1.53.
GE is also the worst performers in the Dow Jones Industrial Average. GE shares are now down 27.8 percent for the fiscal year.