GE's cash flow was below expectations and also weighed on the stock, said Jeff Windau, analyst at Edward Jones. GE pledged to boost its cost-cutting program earlier this year after discussions with Trian Fund Management, which has been frustrated by missed profit goals.
Flannery, a GE veteran, has said he will make cash flow a focus when he takes the helm on August 1.
GE's results translated into 28c per share, 3c above analyst expectations. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that".
Shares were down 3 per cent at $25.87 in mid-morning trading after earlier hitting a 2-year low.
Immelt sold off NBCUniversal, appliances and most of GE Capital.
At GE Power, the world's largest maker of gas turbines, revenue climbed 5 percent. 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.
In the past month, Flannery has begun a "series of deep dives into each of the businesses, looking at everything you would expect", he said Friday.
Adjusted earnings fell 45 per cent to 28 cents a share, compared with estimates for 25 cents.
GE during the second quarter reached an agreement with the U.S. Justice Department that closed the merger with oilfield services company Baker Hughes. Cash flow from operations totaled $3.6-billion, up from $400-million in the first quarter. Despite the beats, EPS declined from 51 cents in the prior-year quarter while revenue declined 12% from $33.49 billion for the same period.
By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia CommonsGeneral Electric Q2 2017 earnings amounted to 13 cents per share on a net basis, marking a 57% year over year decline.