LM Ericsson Telephone Co. Earnings: Here’s Why Investors are Selling Shares Now
LM Ericsson Telephone Co. (NASDAQ:ERIC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.51%.
LM Ericsson Telephone Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 700% to $0.88 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Rose 590.93% to $55.3 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: LM Ericsson Telephone Co. reported adjusted EPS income of $0.88 per share. By that measure, the company beat the mean analyst estimate of $0.18. It beat the average revenue estimate of $8.54 billion.
Quoting Management: “There was continued high project activity in Europe as well as in North America where two large mobile broadband coverage projects have peaked in first half 2013. North East Asia had another challenging quarter following continued structural decline in GSM investments in China, FX in Japan and lower business activity in South Korea due to spectrum delays.
The business mix, with a higher share of coverage projects than capacity projects, started to shift slightly towards more capacity during the quarter. Said Hans Vestberg, President and CEO of Ericsson (NASDAQ: ERIC).
Key Stats (on next page)…