Telefonaktiebolaget LM Ericsson (ERIC) Upgraded by Zacks Investment Research to Hold
Zacks Investment Research upgraded shares of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from a sell rating to a hold rating in a report released on Tuesday morning.
According to Zacks, “Ericsson has a dreadful earnings history – with massive, consecutive earnings misses over the trailing four quarters. The company’s recent earnings have been dragged by low investments in mobile broadband and weak demand, huge restructuring expenses and rising R&D expenses. Ericsson is struggling amid challenging market conditions and all-pervasive demand weakness. Soft mobile broadband market and shrinking network sales are hurting revenues badly. Over the past year, Ericsson’s shares have significantly underperformed the industry’s average gain. However, Ericsson 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. Ericsson has prioritized three areas of growth — core business, targeted investments and cost & efficiency.”
A number of other research firms also recently commented on ERIC. ValuEngine downgraded shares of Telefonaktiebolaget LM Ericsson from a hold rating to a sell rating in a research note on Wednesday, March 7th. Canaccord Genuity reaffirmed a hold rating and set a $6.00 price objective (down previously from $6.50) on shares of Telefonaktiebolaget LM Ericsson in a research note on Thursday, February 1st. BidaskClub downgraded shares of Telefonaktiebolaget LM Ericsson from a sell rating to a strong sell rating in a research note on Friday, December 29th. Finally, Bank of America downgraded shares of Telefonaktiebolaget LM Ericsson from a buy rating to an underperform rating in a research note on Monday, February 5th. Five investment analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned 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 posted its quarterly earnings data on Wednesday, January 31st. The communications equipment provider reported ($0.14) EPS for the quarter, missing the Zacks’ consensus estimate of $0.04 by ($0.18). Telefonaktiebolaget LM Ericsson had a negative net margin of 17.57% and a negative return on equity of 11.30%. The company had revenue of $57.20 billion for the quarter, compared to analyst estimates of $58.24 billion. During the same period in the prior year, the company earned $0.62 EPS. The company’s revenue was down 12.3% compared to the same quarter last year. sell-side analysts expect that Telefonaktiebolaget LM Ericsson will post 0.03 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Hotchkis & Wiley Capital Management LLC increased its position in Telefonaktiebolaget LM Ericsson by 24.6% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 114,238,889 shares of the communications equipment provider’s stock worth $656,874,000 after purchasing an additional 22,573,761 shares in the last quarter. Folketrygdfondet increased its position in Telefonaktiebolaget LM Ericsson by 23.7% during the 3rd quarter. Folketrygdfondet now owns 10,432,504 shares of the communications equipment provider’s stock worth $59,987,000 after purchasing an additional 2,000,000 shares in the last quarter. Artisan Partners Limited Partnership acquired a new stake in Telefonaktiebolaget LM Ericsson during the 3rd quarter worth approximately $46,707,000. Jane Street Group LLC increased its position in Telefonaktiebolaget LM Ericsson by 8.7% during the 3rd quarter. Jane Street Group LLC now owns 1,692,288 shares of the communications equipment provider’s stock worth $9,731,000 after purchasing an additional 135,636 shares in the last quarter. Finally, 13D Management LLC acquired a new stake in Telefonaktiebolaget LM Ericsson during the 4th quarter worth approximately $11,196,000. 8.32% of the stock is owned by hedge funds and other institutional investors.
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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