Economy

Intraday Movers: General Electric Company (NYSE:GE), CSX Corporation (NASDAQ:CSX)

Intraday Movers: General Electric Company (NYSE:GE), CSX Corporation (NASDAQ:CSX)

Shares of General Electric Co. tumbled to the lowest level seen in almost two years on Friday, as outgoing Chief Executive Jeff Immelt ended his reign of the industrial conglomerate with a downbeat outlook.

Analysts are doubtful that GE will reach a long-term goal of delivering $2 a share in profit in 2018, but the company said an updated view won't come until Mr. Flannery reports to investors in mid-November after he conducts a review of the company's business. They have cut $670 million from their industrial structural costs this year so far, and they're on track to meet or surpass their target of $1 billion in cost reductions for this year.

In recent years, the company has turned its focus to its industrial businesses, shedding low-margin units like home appliances and recently closed a big oil-and-gas deal. For the quarter, the division yielded $2.5 billion in revenue, up 17 percent from the same period in 2016.

The company said Flannery will provide an update on GE's 2018 possible predictions later in the year.

Some investors seem to believe GE's fortunes may improve after incoming CEO John Flannery takes over on August 1. The healthcare segment saw revenues rise 4% to $4.7 billion and transportation segment revenues fell 14% to $1.07 billion.

GE continues to forecast 2017 adjusted EPS in the range of $1.60 to $1.70. Of that total $242.6 billion is services backlog and $84.2 billion is equipment.

Analyst Jim Corridore at CFRA, which acquired S&P Global's equity and fund-research business previous year, followed by downgrading GE to hold from buy, and by cutting his stock price target to $27 from $36.

Aviation and slid 3 percent in the oil and gas unit, which has struggled amid the plunge and sluggish recovery of crude prices.

General Electric is expected to report its second quarter earnings before the markets open today. Analysts were expecting adjusted earnings of 25 cents on $29.02 billion in sales, according to Thomson Reuters.

Shares of the USA conglomerate fell more than 4% in morning trade after it said profits fell 57% to $1.2bn, as sales in its oil and gas, transportation and lighting divisions fell.