Zacks Investment Research Lowers Telefonaktiebolaget LM Ericsson (ERIC) to Strong Sell

Zacks Investment Research lowered shares of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from a hold rating to a strong sell rating in a report issued on Tuesday morning.

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.”

ERIC has been the topic of several other research reports. Canaccord Genuity dropped their target price on Telefonaktiebolaget LM Ericsson from $5.75 to $5.25 and set a hold rating on the stock in a report on Monday, October 23rd. BNP Paribas raised Telefonaktiebolaget LM Ericsson from a neutral rating to an outperform rating in a report on Thursday, September 21st. ValuEngine raised Telefonaktiebolaget LM Ericsson from a sell rating to a hold rating in a report on Saturday, October 21st. BidaskClub cut Telefonaktiebolaget LM Ericsson from a sell rating to a strong sell rating in a report on Friday, December 29th. Finally, Citigroup cut 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, nine have given a hold rating and four have issued a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $5.59.

Shares of Telefonaktiebolaget LM Ericsson (ERIC) traded up $0.14 during trading hours on Tuesday, reaching $7.03. The company had a trading volume of 5,960,000 shares, compared to its average volume of 4,040,000. Telefonaktiebolaget LM Ericsson has a 1 year low of $5.52 and a 1 year high of $7.47. The company has a market capitalization of $23,190.00, a PE ratio of -10.49, a price-to-earnings-growth ratio of 28.97 and a beta of 1.10. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.35 and a current ratio of 1.72.

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) last announced its earnings results on Friday, October 20th. The communications equipment provider reported ($0.06) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.01 by ($0.07). Telefonaktiebolaget LM Ericsson had a negative return on equity of 5.67% and a negative net margin of 8.60%. The firm had revenue of $47.80 billion for the quarter, compared to the consensus estimate of $47.21 billion. During the same period in the previous year, the firm earned $0.34 EPS. Telefonaktiebolaget LM Ericsson’s revenue for the quarter was down 6.5% on a year-over-year basis. equities analysts predict that Telefonaktiebolaget LM Ericsson will post -0.13 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently bought and sold shares of ERIC. Bank of New York Mellon Corp increased its holdings in shares of Telefonaktiebolaget LM 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 valued at $693,000 after buying an additional 2,891 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Telefonaktiebolaget LM Ericsson by 264,310.8% in the second quarter. JPMorgan Chase & Co. now owns 1,396,089 shares of the communications equipment provider’s stock valued at $10,011,000 after buying an additional 1,395,561 shares in the last quarter. CIBC World Markets Inc. increased its holdings in shares of Telefonaktiebolaget LM Ericsson by 14.2% in the second quarter. CIBC World Markets Inc. now owns 44,002 shares of the communications equipment provider’s stock valued at $315,000 after buying an additional 5,460 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Telefonaktiebolaget LM Ericsson by 1,827.2% in the second quarter. Ameriprise Financial Inc. now owns 976,103 shares of the communications equipment provider’s stock valued at $6,998,000 after buying an additional 925,455 shares in the last quarter. Finally, Westfield Capital Management Co. LP bought a new position in shares of Telefonaktiebolaget LM Ericsson in the second quarter valued at $15,331,000. 8.07% of the stock is currently owned by institutional investors.

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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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