Zacks Investment Research downgraded shares of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from a hold rating to a sell rating in a research report released on Tuesday morning.
According to Zacks, “In the past one year, Ericsson’s shares have underperformed the industry’s average 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 all-pervasive demand weakness. Soft mobile broadband market and shrinking network sales are hurting revenues badly. Ericsson’s revenues and margins in the Networks and Media segment continue to take a grave beating on account of persistent low investments in mobile broadband in certain markets and lower LTE investments in Mainland China. Escalating restructuring expenses and spectrum crunch may hurt profits, going forward. However, the company has detected signs of improvement and increased stability in product roadmaps and projects. The company plans to invest in R&D to fortify Networks business and intends to stabilize IT & Cloud roadmaps.”
A number of other research analysts also recently weighed in on the stock. ValuEngine upgraded shares of Telefonaktiebolaget LM Ericsson from a sell rating to a hold rating in a research report on Thursday, March 1st. BidaskClub raised shares of Telefonaktiebolaget LM Ericsson from a strong sell rating to a sell rating in a research note on Tuesday, February 13th. Bank of America cut shares of Telefonaktiebolaget LM Ericsson from a buy rating to an underperform rating in a research note on Monday, February 5th. Canaccord Genuity reissued a hold rating and set a $6.00 target price (down previously from $6.50) on shares of Telefonaktiebolaget LM Ericsson in a research note on Thursday, February 1st. Finally, Citigroup cut shares of Telefonaktiebolaget LM Ericsson from a buy rating to a neutral rating in a research note on Thursday, November 9th. Six research analysts have rated the stock with a sell rating, six have issued a hold rating and two have issued a buy rating to the company’s stock. Telefonaktiebolaget LM Ericsson has an average rating of Hold and a consensus price target of $4.91.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) last issued its quarterly earnings data 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). The firm had revenue of $57.20 billion during the quarter, compared to analyst estimates of $58.24 billion. Telefonaktiebolaget LM Ericsson had a negative return on equity of 11.30% and a negative net margin of 17.57%. The company’s revenue was down 12.3% on a year-over-year basis. During the same quarter last year, the company posted $0.62 EPS. analysts forecast that Telefonaktiebolaget LM Ericsson will post 0.03 EPS for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the company. Gotham Asset Management LLC purchased a new stake in shares of Telefonaktiebolaget LM Ericsson during the fourth quarter worth about $191,000. Verition Fund Management LLC purchased a new stake in shares of Telefonaktiebolaget LM Ericsson during the fourth quarter worth about $205,000. Two Sigma Investments LP increased its stake in shares of Telefonaktiebolaget LM Ericsson by 2,074.6% during the fourth quarter. Two Sigma Investments LP now owns 254,608 shares of the communications equipment provider’s stock worth $1,701,000 after purchasing an additional 242,900 shares in the last quarter. Deutsche Bank AG increased its stake in shares of Telefonaktiebolaget LM Ericsson by 56.7% during the fourth quarter. Deutsche Bank AG now owns 786,482 shares of the communications equipment provider’s stock worth $5,253,000 after purchasing an additional 284,663 shares in the last quarter. Finally, Dynamic Capital Management Ltd purchased a new stake in shares of Telefonaktiebolaget LM Ericsson during the fourth quarter worth about $462,000. 8.32% of the stock is owned by institutional investors and hedge funds.
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About Telefonaktiebolaget LM 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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