Zacks Investment Research downgraded shares of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday, January 9th.
According to Zacks, “Over the past six months, Ericsson’s shares have recorded a negative average return far worse than the industry’s average positive return. Ericsson also has a dreadful earnings history – with huge, consecutive earnings misses over the trailing four quarters. The company is struggling amid challenging market conditions and a major strategic shake-up, and expects an uncertain market to wipe out nearly SEK 5 billion of operating income over the next year. There is also an increased risk of market and customer project adjustments, which can have a negative impact of SEK 3-5 billion on the operating income in the coming year. Escalating restructuring expenses and spectrum crunch may pose as significant headwinds, going forward. However, Ericsson has detected signs of improvement and increased stability in product roadmaps and projects.”
A number of other research firms also recently commented on ERIC. Canaccord Genuity dropped their price objective on Telefonaktiebolaget LM Ericsson from $6.00 to $5.25 and set a hold rating for the company in a report on Friday, September 22nd. Cowen downgraded Telefonaktiebolaget LM Ericsson to an underperform rating in a report on Thursday, October 19th. BMO Capital Markets restated a hold rating and set a $6.00 price objective on shares of Telefonaktiebolaget LM Ericsson in a report on Friday, October 20th. Credit Suisse Group downgraded Telefonaktiebolaget LM Ericsson from a neutral rating to an underperform rating and dropped their price objective for the stock from $6.00 to $4.65 in a report on Tuesday, October 3rd. Finally, Citigroup downgraded Telefonaktiebolaget LM Ericsson from a buy rating to a neutral rating in a report on Thursday, November 9th. Four equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $5.59.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) opened at $6.44 on Tuesday. Telefonaktiebolaget LM Ericsson has a 52 week low of $5.52 and a 52 week high of $7.47. The firm has a market capitalization of $21,620.00, a price-to-earnings ratio of -9.20, a price-to-earnings-growth ratio of 29.47 and a beta of 1.10. The company has a current ratio of 1.72, a quick ratio of 1.35 and a debt-to-equity ratio of 0.24.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) last issued its quarterly earnings results on Wednesday, January 31st. The communications equipment provider reported ($0.14) earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.18). Telefonaktiebolaget LM Ericsson had a negative return on equity of 5.67% and a negative net margin of 8.60%. The business had revenue of $57.20 billion for the quarter, compared to analysts’ expectations of $58.24 billion. During the same period in the prior year, the company earned $0.62 EPS. The company’s revenue for the quarter was down 12.3% compared to the same quarter last year. sell-side analysts expect that Telefonaktiebolaget LM Ericsson will post -0.13 earnings per share for the current year.
Large investors have recently bought and sold shares of the business. Bank of New York Mellon Corp boosted its position in Telefonaktiebolaget LM Ericsson by 3.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 96,675 shares of the communications equipment provider’s stock valued at $693,000 after buying an additional 2,891 shares during the last quarter. Artisan Partners Limited Partnership purchased a new position in Telefonaktiebolaget LM Ericsson in the 3rd quarter valued at about $46,707,000. Oppenheimer Asset Management Inc. boosted its position in Telefonaktiebolaget LM Ericsson by 19.2% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 218,684 shares of the communications equipment provider’s stock valued at $1,257,000 after buying an additional 35,279 shares during the last quarter. Folketrygdfondet boosted its position in Telefonaktiebolaget LM Ericsson by 23.7% in the 3rd quarter. Folketrygdfondet now owns 10,432,504 shares of the communications equipment provider’s stock valued at $59,987,000 after buying an additional 2,000,000 shares during the last quarter. Finally, Crossmark Global Holdings Inc. bought a new position in shares of Telefonaktiebolaget LM Ericsson during the third quarter worth about $1,823,000. 8.07% of the stock is owned by institutional investors.
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Telefonaktiebolaget LM Ericsson Company Profile
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.
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