Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) missed earnings on 8 occasions

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is projected to declare fiscal first quarter financial results right before the stock market’s official open on April 25, 2017. The stock added about 12.4 percent in price since last results when it was at $5.89 a share. Based on the most relevant past-periods data, there is an 66.67 percent probability for this firm’s share price to go down following next quarterly results. Earnings reaction history tells us that the equity price moved down 12 times out of last 18 reported quarters. It has beaten earnings-per-share estimates 25% of the time in its last 12 earnings reports. It fell short of earnings estimates on 8 occasions, and it has met expectations 1 time.

Here’s how traders responded to ERIC earnings announcements over the past few quarters.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was -35.89 percent over the past four quarters. Back on January 26, 2017, it posted earnings per-share earnings at $0.07 which missed the consensus $0.11 projection (negative surprise of-36.36%). For the quarter, revenue came in at 7.63B versus consensus estimate of 6.75B. The stock gained 3.06 percent the session following the earnings reports were released, and on 7th day price change was 0 percent.

On October 21, 2016, it reported earnings at $0.04 a share compared with the consensus estimate of $0.09 per share (negative surprise of -55.56%). Revenue of 5.98B for that quarter was below the $6.19B analysts had expected. The stock retreated -5.03% the day following the earnings announcement, and on 7th day price change was -8.01%.

On July 19, 2016, it recorded $0.1 a share in earnings which missed the consensus estimate of $0.14 (negative surprise of -28.57%). Revenue for the quarter was $6.44B while analysts called for revenues to be $6.76B. The stock dropped -6.1% the day following the earnings data was made public, and on 7th day price change was -1.33%.

On April 21, 2016, it announced earnings per share at $0.1 versus the consensus estimate of $0.13 per share (negative surprise of -23.08%). That came on revenues of $6.18B for that period. Analysts had expected $6.49B in revenue.

Telefonaktiebolaget LM Ericsson (publ) Earnings Estimates

As Q1 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.02. The analysts’ present consensus range is $-0.03-$0.06 for EPS. The market consensus range for revenue is between $5.04B and $5.46B, with an average of $5.24B.

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) last ended at $6.64, sending the company’s market cap near $21.51B. The consensus 12-month price target from analysts covering the stock is $6.54. The share price has declined -32.66% from its top level in 52 weeks and dropped 13.89% this year. It recently traded in a range of $6.6-$6.66 at a volume of 3281399 shares. The recent trading ended with the price nearly 2.31 higher for the last 5 trading days, rebounding 37.47% from its 52-week low.