General Electric Co. (NYSE: GE) stock dropped to the lowest it's been in 19 months after the company experienced a 12 percent drop in revenue from a year earlier.
It was GE's final quarterly earnings report before John Flannery replaces Jeff Immelt as CEO next month.
Share prices were down as much as 5 percent after GE's earnings statement. The shares fell to their lowest level since October 2015.
Here's how the company did in the second quarter compared with what Wall Street expected, according to Thomson Reuters:
- EPS: 28 cents vs. 25 cents; down from 51 cents in last year's second quarter.
- Revenue: $29.558 billion vs. $29.015 billion; down from $33.49 billion last year.
The drop in yearly revenue happened due to GE's energy connections business offset strength in renewables and power units.
The energy connections business provides electricity and automation products to the oil and gas, mining, utility and marine industries.
GE watched as operations fell 67 percent to $3.6 billion in the previous year, looking back at the loss of its appliances division, which the company had sold.
The company’s net profit fell 58 percent to 15 cents a share, when the quarter ended June 30, to 36 cents a share a year earlier.
"We've reduced our Industrial structural costs year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year," Immelt said in the earnings statement.
"The global scale of the company, along with our ability to innovate industry-leading products and services, will help us navigate the current environment and unlock productivity across our businesses and markets."
The company stated its full-year prediction for cash flow, profit, revenue and operating margin. The company did not update its predictions for 2018.
The earnings report came one month after GE announced that Immelt will step down.
Flannery, current president and CEO of GE Healthcare, will become CEO of the corporation on Aug. 1.
The company said Flannery will provide an update on GE's 2018 possible predictions later in the year.
Immelt said in a statement, "We're looking forward to a smooth transition of the CEO position on August 1, when John Flannery becomes CEO. ... I am as confident as ever that John is going to be an outstanding leader of this great company."
After the earnings statement, GE shareholder Jack DeGan told CNBC that GE's new chief will likely be less ambitious at first.
"Usually when a new CEO comes in, especially after a long-standing previous CEO, they want to lower the bar because that's where their starting point begins," DeGan, chief investment officer at Harbor Advisory, said on "Squawk Box."
As stocks are down 18.10% this year, GE hopes with the new CEO change that it lead the company into a positive upward direction after the struggling year.