Ericsson (NASDAQ:ERIC) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Ericsson reported a quarterly earnings per share (EPS) of $0.16, exceeding analysts' estimates of $0.13 by $0.03, despite a revenue decline of 9.0% year-over-year to $5.91 billion.
• The company's stock rose 20.6%, trading at $9.85, with a 12-month high of $9.87.
• Analyst ratings varied, with some analysts assigning a "hold" or "underperform" rating, while Wall Street Zen upgraded Ericsson to a "strong-buy," reflecting a consensus price target of $9.80.

Ericsson (NASDAQ:ERIC - Get Free Report) announced its earnings results on Tuesday. The communications equipment provider reported $0.16 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.03, Zacks reports. The business had revenue of $5.91 billion during the quarter, compared to the consensus estimate of $57.16 billion. Ericsson had a net margin of 7.06% and a return on equity of 21.17%. The firm's revenue was down 9.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.14 earnings per share.

Ericsson Stock Up 20.6%

ERIC stock opened at $9.85 on Wednesday. Ericsson has a 12 month low of $6.64 and a 12 month high of $9.87. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.09 and a quick ratio of 0.86. The company has a market capitalization of $32.98 billion, a P/E ratio of 19.70, a price-to-earnings-growth ratio of 12.40 and a beta of 0.87. The firm's fifty day simple moving average is $8.01 and its 200-day simple moving average is $8.04.

Institutional Trading of Ericsson

A number of hedge funds have recently added to or reduced their stakes in ERIC. Dynamic Technology Lab Private Ltd purchased a new stake in Ericsson during the first quarter worth $126,000. AQR Capital Management LLC boosted its stake in shares of Ericsson by 7.5% during the 1st quarter. AQR Capital Management LLC now owns 134,891 shares of the communications equipment provider's stock worth $1,049,000 after acquiring an additional 9,362 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Ericsson by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 250,389 shares of the communications equipment provider's stock worth $2,123,000 after acquiring an additional 1,658 shares in the last quarter. Marshall Wace LLP purchased a new stake in shares of Ericsson during the 2nd quarter worth about $2,735,000. Finally, Lazard Asset Management LLC boosted its position in Ericsson by 197.2% during the second quarter. Lazard Asset Management LLC now owns 1,242,381 shares of the communications equipment provider's stock worth $10,534,000 after purchasing an additional 824,287 shares in the last quarter. 7.99% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ERIC has been the topic of a number of recent analyst reports. BNP Paribas reaffirmed an "underperform" rating on shares of Ericsson in a research report on Wednesday, September 3rd. Barclays restated an "underweight" rating on shares of Ericsson in a research note on Wednesday. Wall Street Zen upgraded shares of Ericsson from a "buy" rating to a "strong-buy" rating in a research note on Friday, September 5th. Danske lowered shares of Ericsson to a "hold" rating in a report on Wednesday. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Ericsson in a report on Wednesday, October 8th. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $9.80.

Ericsson Company Profile

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.

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