General Electric Down, American Airlines Up After Earnings

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General Electric and American Airlines released their latest earnings reports before opening bell this morning. GE posted adjusted earnings of 51 cents per share on $33.49 billion in revenue. Analysts had been expecting earnings of 46 cents per share on $31.76 billion in revenue. In last year’s second quarter, General Electric reported $32.75 billion in revenue.

American Airlines reported adjusted earnings per share of $2.81, a new record on $10.4 billion in revenue, representing a 4.3% year over year decline, against the consensus of $1.68 per share in earnings and $10.32 billion in revenue. In last year’s second quarter, the airline posted earnings of $2.62 per share.

GE shares fall after earnings

General Electric GE

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GE’s net earnings were 30 cents per share, compared to last year’s GAAP loss of 13 cents per share, although in all it reported four different earnings numbers, emphasizing that comparisons with last year’s second quarter are difficult. It has been in the process of existing GE Capital and has acquired Alstom. Additionally, General Electric has reported pension costs and charges related to its restructuring that have impacted its profits. Operating earnings were 39 cents per share, while non-GAAP earnings from the Industrials segment were 51 cents per share on the back of strength in Power, Aviation and Healthcare, which offset challenges in Oil & Gas and Transportation.

GE also reaffirmed its guidance for full-year industrial operating and earnings per share. The company’s stock slipped by as much as 1.99% to $31.94 in premarket trading this morning.

American Airlines rises after earnings beat

American Airlines’ GAAP earnings declined from $2.41 last year to $1.77 this year. The airline said competitive capacity growth hurt its revenue in the second quarter, as did macroeconomic softness and weakness in foreign currencies. Consolidated passenger revenue per ASM declined 6.3% to 12.71 cents, while consolidated passenger yield declined 5.3%to 15.42 cents.  Mainland cost per available seat mile declined 4.6% to 11.32 cents.

Shares of American Airlines increased by as much as 1.12% to $35.35 in premarket trading this morning.