According to Zacks, “Ericsson has had a choppy run so far – with two earnings misses, one beat and one quarter of in-line results – over the trailing four quarters. Soft emerging market conditions, completion of major projects in Europe and adverse currency translation have been hurting top-line performances over the past few quarters. During second-quarter 2016, weakening currencies across some of the major Latin America markets and floating of the Nigerian currency proved to be major dampeners. Also, budget cuts by telecom operators are denting the company’s performance as carriers across Europe, Russia and Brazil curtailed investments in wireless products. Moreover, escalating restructuring expenses may pose as significant headwinds ahead. However, on the positive side, a constant rise in demand for 4GLTE and dominant position in the TV & Media business are expected to drive growth.”
Other analysts have also recently issued research reports about the stock. Vetr raised shares of Ericsson from a hold rating to a buy rating and set a $7.69 target price on the stock in a report on Monday, June 13th. Barclays PLC raised shares of Ericsson from an underweight rating to an equal weight rating in a report on Wednesday, July 6th. Bank of America Corp. reaffirmed a hold rating on shares of Ericsson in a report on Tuesday, July 26th. BMO Capital Markets reaffirmed a hold rating and issued a $7.00 target price on shares of Ericsson in a report on Monday, July 25th. Finally, Canaccord Genuity reduced their target price on shares of Ericsson from $8.50 to $7.00 and set a hold rating on the stock in a report on Wednesday, July 20th. Three equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating, one has issued a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of Hold and an average target price of $8.49.
Shares of Ericsson (NASDAQ:ERIC) opened at 6.93 on Tuesday. The firm’s 50-day moving average is $7.14 and its 200 day moving average is $7.98. The firm has a market capitalization of $22.60 billion, a PE ratio of 14.32 and a beta of 1.01. Ericsson has a 52 week low of $6.68 and a 52 week high of $10.58.
Ericsson (NASDAQ:ERIC) last issued its earnings results on Tuesday, July 19th. The company reported $0.10 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.12 by $0.02. Ericsson had a net margin of 5.70% and a return on equity of 13.14%. On average, equities analysts forecast that Ericsson will post $0.51 earnings per share for the current year.
A number of institutional investors have recently bought and sold shares of the stock. Sterling Capital Management LLC raised its position in Ericsson by 25.6% in the second quarter. Sterling Capital Management LLC now owns 14,382 shares of the company’s stock worth $110,000 after buying an additional 2,931 shares during the period. OLD National Bancorp IN raised its position in Ericsson by 38.2% in the second quarter. OLD National Bancorp IN now owns 15,638 shares of the company’s stock worth $120,000 after buying an additional 4,325 shares during the period. Societe Generale purchased a new position in Ericsson during the second quarter worth $133,000. SG Americas Securities LLC raised its position in Ericsson by 49.1% in the second quarter. SG Americas Securities LLC now owns 17,344 shares of the company’s stock worth $133,000 after buying an additional 5,714 shares during the period. Finally, Smithfield Trust Co. purchased a new position in Ericsson during the second quarter worth $136,000. Hedge funds and other institutional investors own 7.29% of the company’s stock.
Telefonaktiebolaget LM Ericsson is a Sweden-based telecommunications operator. The Company offers hardware, software and services that drive development in mobility, broadband and the cloud, creating ecosystems across various industries. Ericsson’s core businesses are Radio, Core and Transmission, and Telecom Services.
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