Ericsson (NASDAQ:ERIC) Stock Price Down 16.7% on Disappointing Earnings

Ericsson (NASDAQ:ERIC) dropped 16.7% during trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $6.04 and last traded at $6.07, with a volume of 22,174,994 shares changing hands. The stock had previously closed at $7.28.

The communications equipment provider reported $0.02 EPS for the quarter, missing the consensus estimate of $0.05 by $0.03. Ericsson had a negative return on equity of 3.16% and a negative net margin of 6.40%. The company had revenue of $49.90 billion during the quarter, compared to analyst estimates of $50.66 billion. During the same quarter in the prior year, the company posted $0.83 earnings per share. The business’s revenue was down 7.8% compared to the same quarter last year.

ERIC has been the topic of several recent analyst reports. BidaskClub upgraded shares of Ericsson from a “buy” rating to a “strong-buy” rating in a report on Friday, July 14th. Citigroup Inc. started coverage on shares of Ericsson in a report on Thursday, June 8th. They set a “buy” rating on the stock. J P Morgan Chase & Co reiterated a “hold” rating on shares of Ericsson in a report on Tuesday, July 18th. ValuEngine upgraded shares of Ericsson from a “strong sell” rating to a “sell” rating in a report on Friday, June 2nd. Finally, Cowen and Company reiterated a “market perform” rating and set a $3.00 target price (down from $4.00) on shares of Ericsson in a report on Saturday, April 29th. Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $5.95.

A number of large investors have recently added to or reduced their stakes in ERIC. Profund Advisors LLC increased its stake in Ericsson by 51.0% in the first quarter. Profund Advisors LLC now owns 182,266 shares of the communications equipment provider’s stock worth $1,210,000 after buying an additional 61,523 shares during the last quarter. Wetherby Asset Management Inc. increased its stake in Ericsson by 25.7% in the first quarter. Wetherby Asset Management Inc. now owns 40,587 shares of the communications equipment provider’s stock worth $269,000 after buying an additional 8,299 shares during the last quarter. Wells Fargo & Company MN increased its stake in Ericsson by 239.1% in the first quarter. Wells Fargo & Company MN now owns 569,851 shares of the communications equipment provider’s stock worth $3,784,000 after buying an additional 401,783 shares during the last quarter. OLD National Bancorp IN increased its stake in Ericsson by 8.1% in the first quarter. OLD National Bancorp IN now owns 15,786 shares of the communications equipment provider’s stock worth $105,000 after buying an additional 1,181 shares during the last quarter. Finally, Advisors Asset Management Inc. increased its stake in Ericsson by 11.7% in the first quarter. Advisors Asset Management Inc. now owns 330,501 shares of the communications equipment provider’s stock worth $2,195,000 after buying an additional 34,528 shares during the last quarter. Hedge funds and other institutional investors own 8.13% of the company’s stock.

TRADEMARK VIOLATION NOTICE: This article was originally reported by Sports Perspectives and is the sole property of of Sports Perspectives. If you are reading this article on another publication, it was illegally copied and reposted in violation of U.S. & international trademark & copyright law. The correct version of this article can be accessed at https://sportsperspectives.com/2017/08/13/ericsson-nasdaqeric-shares-down-16-7-following-weak-earnings-updated-updated-updated.html.

About Ericsson

Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company’s segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks.

Receive News & Ratings for Ericsson Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ericsson and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply