LM Ericsson Telephone
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LM Ericsson Telephone missed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and GAAP earnings per share dropped.
Margins contracted across the board.
LM Ericsson Telephone booked revenue of $9.27 billion. The 23 analysts polled by S&P Capital IQ expected a top line of $9.80 billion. Sales were 0.7% lower than the prior-year quarter's $9.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.05. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share on the same basis. GAAP EPS of $0.05 for Q4 were 74% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, 560 basis points worse than the prior-year quarter. Operating margin was 7.5%, 560 basis points worse than the prior-year quarter. Net margin was 1.8%, 510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.86 billion. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $34.92 billion. The average EPS estimate is $0.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 334 members out of 365 rating the stock outperform, and 31 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give LM Ericsson Telephone a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LM Ericsson Telephone is outperform, with an average price target of $12.20.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.