uploads///

What Just Happened to Ericsson’s Stock Price?

By

Nov. 20 2020, Updated 4:26 p.m. ET

Ericsson’s falling shares

Shares of telecom equipment firm Ericsson (ERIC) fell ~10% in July 2017 to close the month at $6.42. Ericsson announced its 2Q17 results, and shares of the firm fell ~16% that same day. For 2Q17, Ericsson reported revenue of 49.9 billion SEK (Swedish kronor), representing a fall of 8% YoY (year-over-year) and a fall 13% YoY on a constant currency basis.

The firm also reported a GAAP (generally accepted accounting principles) net loss of $1 billion SEK of $120 million in 2Q17. Non-GAAP EPS (earnings per share) came in at $0.02—way below the analyst estimate of $0.05.

Article continues below advertisement

Ericsson’s revenue expectations

Ericsson continues to battle weak macroeconomic conditions globally and will likely struggle to return to revenue growth anytime soon. Analysts expect the firm’s revenue to fall 6.2% YoY in 3Q17 to ~$5.6 billion and 9.3% YoY in 4Q17 to ~$6.9 billion. Analysts expect Ericsson’s revenue to fall 7.5% YoY to $24.1 billion in 2017.

Ericsson stock has fallen ~14% in the trailing 12-month period, after falling 37% last year. Peer companies Cisco Systems (CSCO), Juniper (JNPR), and Nokia (NOK) have generated returns of 3%, 23%, and 11%, respectively, in the trailing-12-month period.

Continue to the next part of this series for a look at Twitter.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.