Ericsson Goes Red
Ericsson (OM: ERIC B) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ericsson beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins dropped, net margins dropped.
Ericsson tallied revenue of $10.28 billion. The 26 analysts polled by S&P Capital IQ wanted to see revenue of $9.99 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $9.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS were -$0.31 for Q4 compared to $0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 20 basis points better than the prior-year quarter. Operating margin was 7.1%, 30 basis points worse than the prior-year quarter. Net margin was -9.7%, 1,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.23 billion. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $36.71 billion. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 343 members out of 378 rating the stock outperform, and 35 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Ericsson a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ericsson is outperform, with an average price target of $10.71.
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The article Ericsson Goes Red originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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