LM Ericsson Telephone Co. (ERIC) Shares Plunge
U.S.-traded shares of LM Ericsson followed their European counterparts down in premarket trading Tuesday after the Swedish cell phone maker warned of a disappointing third quarter.
Ericsson cut its outlook for sales, operating income and cash flow to below analyst expectations, blaming slow sales across several regions.
JPMorgan Securities analyst Ehud A. Gelblum said sales in "China and/or Australia appear to be a large part of the problem," since Ericsson said sales in the Asia-Pacific region grew 3 percent year-over-year, but would have been 17 percent higher without those two countries included.
"This suggests significant weakness in one or both of those regions and we believe that revenues for both China and Australia are high margin due to heavy upgrade activity," Gelblum said. Meanwhile, North America was "slower to pick up than Ericsson had anticipated."
Ericsson cut its outlook for sales, operating income and cash flow to below analyst expectations, blaming slow sales across several regions.
JPMorgan Securities analyst Ehud A. Gelblum said sales in "China and/or Australia appear to be a large part of the problem," since Ericsson said sales in the Asia-Pacific region grew 3 percent year-over-year, but would have been 17 percent higher without those two countries included.
"This suggests significant weakness in one or both of those regions and we believe that revenues for both China and Australia are high margin due to heavy upgrade activity," Gelblum said. Meanwhile, North America was "slower to pick up than Ericsson had anticipated."
Labels: ERIC, LM Ericsson Telephone Co.
posted by Stock Administrator @ 1:20 PM
0 Comments:
Post a Comment
<< Home