Zacks Research Analysts Cut Earnings Estimates for Ericsson

Key Points

• Zacks Research analysts have revised their earnings estimate for Ericsson, predicting Q1 2027 EPS to be $0.13, down from an earlier forecast of $0.15.
• Despite the lowered earnings estimates, several analysts have adjusted their ratings for Ericsson, with JPMorgan increasing its price target to $9.80 and upgrading the rating to "neutral."
• In recent trading, Ericsson's stock increased slightly to $7.52, with a market capitalization of approximately $25.16 billion.

Ericsson (NASDAQ:ERIC - Free Report) - Research analysts at Zacks Research cut their Q1 2027 EPS estimates for Ericsson in a research note issued on Tuesday, August 5th. Zacks Research analyst R. Department now anticipates that the communications equipment provider will post earnings of $0.13 per share for the quarter, down from their previous forecast of $0.15. The consensus estimate for Ericsson's current full-year earnings is $0.48 per share. Zacks Research also issued estimates for Ericsson's FY2027 earnings at $0.63 EPS.

A number of other analysts also recently weighed in on the company. JPMorgan Chase & Co. increased their price objective on Ericsson from $8.90 to $9.80 and gave the company a "neutral" rating in a report on Friday, April 11th. Kepler Capital Markets upgraded Ericsson from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 16th. Finally, Wall Street Zen upgraded Ericsson from a "buy" rating to a "strong-buy" rating in a report on Thursday, April 17th.

Ericsson Price Performance

Shares of NASDAQ:ERIC traded up $0.02 during trading on Friday, hitting $7.52. 2,648,634 shares of the company were exchanged, compared to its average volume of 21,712,145. The business's 50 day moving average is $8.03 and its 200-day moving average is $8.05. The company has a market capitalization of $25.16 billion, a P/E ratio of 15.03, a price-to-earnings-growth ratio of 11.83 and a beta of 0.85. The company has a quick ratio of 0.86, a current ratio of 1.09 and a debt-to-equity ratio of 0.35. Ericsson has a 1-year low of $6.64 and a 1-year high of $8.99.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 15th. The communications equipment provider reported $0.14 EPS for the quarter, beating the consensus estimate of $0.12 by $0.02. The business had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $60.54 billion. Ericsson had a net margin of 7.06% and a return on equity of 21.17%. The company's revenue was down 6.2% on a year-over-year basis. During the same period in the previous year, the business earned ($3.34) earnings per share.

Hedge Funds Weigh In On Ericsson

Several large investors have recently added to or reduced their stakes in ERIC. Federated Hermes Inc. bought a new position in shares of Ericsson during the 1st quarter worth approximately $27,000. Pinnacle Bancorp Inc. bought a new stake in shares of Ericsson in the 1st quarter worth approximately $31,000. Minot DeBlois Advisors LLC bought a new stake in shares of Ericsson in the 4th quarter worth approximately $35,000. GeoWealth Management LLC bought a new stake in shares of Ericsson in the 4th quarter worth approximately $36,000. Finally, Cromwell Holdings LLC grew its stake in Ericsson by 72.8% in the 2nd quarter. Cromwell Holdings LLC now owns 10,276 shares of the communications equipment provider's stock valued at $87,000 after buying an additional 4,330 shares in the last quarter. Institutional investors own 7.99% of the company's stock.

About Ericsson

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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