Swedish mobile-phone equipment maker Ericsson
To begin with, the earnings drop was entirely expected. In fact, analysts were looking for net earnings per share of SEK 0.35, a bigger drop than the SEK 0.36 that the company actually delivered. And if you back out charges related to the integration of British phone network builder Marconi, there was a slight uptick in profits after all.
That's a start, but it still doesn't fully explain the market's complacency in the face of slower organic growth over last year. That's where a couple of large equipment and service orders come in handy. Brazil's largest cellular phone service provider, Vivo Participacoe
And Ericsson seems to be the target of a certain gang mentality, as long-standing rivals Nokia
It's tough to be the king sometimes, but it looks like Ericsson is handling itself rather well; it remains poised to pick some more low-hanging fruit in developing countries with budding cell phone markets. The company forecasts a global market for 4.5 billion cell phones by 2012. If that holds up in reality, it's time to grab a fruit basket and keep on picking. And that goes for all of the handset and network makers, not just Ericsson.
Further Foolish reading:
- There are other opportunities on the phone, too.
- Brazil might present the greatest opportunities you never thought of.
- One Fool gives Ericsson a humble bronze medal.
eBay is a Motley Fool Stock Advisor pick. Take the newsletter for a 30-day free spin.
Fool contributor Anders Bylund holds no position in the companies discussed here. He feels like a traitor for owning a Nokia phone, though. Foolish disclosureis a great value in any currency. You can check outAnders' holdings for yourself.