Ericsson (NASDAQ:ERIC) shares dropped 16.7% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $6.04 and last traded at $6.07, with a volume of 22,174,994 shares. 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 business had revenue of $49.90 billion for the quarter, compared to analyst estimates of $50.66 billion. During the same period in the prior year, the business earned $0.83 EPS. The company’s revenue for the quarter was down 7.8% on a year-over-year basis.
ERIC has been the topic of several analyst reports. Zacks Investment Research raised Ericsson from a “strong sell” rating to a “hold” rating in a research report on Monday, July 17th. Cowen and Company reiterated a “market perform” rating and set a $3.00 price target (down from $4.00) on shares of Ericsson in a report on Saturday, April 29th. BidaskClub upgraded Ericsson from a “buy” rating to a “strong-buy” rating in a report on Friday, July 14th. Canaccord Genuity reiterated a “hold” rating and set a $6.00 price target on shares of Ericsson in a report on Tuesday, July 18th. Finally, Bank of America Corporation restated a “buy” rating on shares of Ericsson in a research note on Friday, June 2nd. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $5.95.
Several institutional investors have recently bought and sold shares of ERIC. Federated Investors Inc. PA raised its stake in Ericsson by 71.4% in the second quarter. Federated Investors Inc. PA now owns 240,000 shares of the communications equipment provider’s stock worth $1,721,000 after buying an additional 100,000 shares during the period. Marshall Wace North America L.P. bought a new stake in Ericsson during the second quarter worth $1,202,000. Chartwell Investment Partners LLC raised its stake in Ericsson by 152.0% in the second quarter. Chartwell Investment Partners LLC now owns 436,000 shares of the communications equipment provider’s stock worth $3,126,000 after buying an additional 263,000 shares during the period. Bank of New York Mellon Corp raised its stake in Ericsson by 3.1% in the second quarter. Bank of New York Mellon Corp now owns 96,675 shares of the communications equipment provider’s stock worth $693,000 after buying an additional 2,891 shares during the period. Finally, SG Americas Securities LLC raised its stake in Ericsson by 34.1% in the second quarter. SG Americas Securities LLC now owns 480,170 shares of the communications equipment provider’s stock worth $3,443,000 after buying an additional 122,147 shares during the period. Hedge funds and other institutional investors own 8.06% of the company’s stock.
The company’s market cap is $20.51 billion.
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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.
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