Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) Shares Gap Up on Better-Than-Expected Earnings

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $4.79, but opened at $5.11. Telefonaktiebolaget LM Ericsson (publ) shares last traded at $5.01, with a volume of 13,036,546 shares changing hands.

The communications equipment provider reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.02. The firm had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.33 billion. Telefonaktiebolaget LM Ericsson (publ) had a negative net margin of 9.82% and a positive return on equity of 11.77%.

Telefonaktiebolaget LM Ericsson (publ) Increases Dividend

The firm also recently declared a dividend, which was paid on Wednesday, April 3rd. Investors of record on Friday, April 5th were given a $0.1293 dividend. The ex-dividend date of this dividend was Thursday, April 4th. This is a positive change from Telefonaktiebolaget LM Ericsson (publ)’s previous dividend of $0.08. Telefonaktiebolaget LM Ericsson (publ)’s dividend payout ratio is -23.29%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ERIC. TheStreet raised shares of Telefonaktiebolaget LM Ericsson (publ) from a “d+” rating to a “c-” rating in a research report on Tuesday, January 9th. Barclays lowered shares of Telefonaktiebolaget LM Ericsson (publ) from an “equal weight” rating to an “underweight” rating in a research report on Friday, January 19th. Finally, UBS Group lowered shares of Telefonaktiebolaget LM Ericsson (publ) from a “neutral” rating to a “sell” rating in a research report on Wednesday, January 31st. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $5.90.

Institutional Trading of Telefonaktiebolaget LM Ericsson (publ)

Several large investors have recently added to or reduced their stakes in the company. Planned Solutions Inc. bought a new stake in shares of Telefonaktiebolaget LM Ericsson (publ) during the fourth quarter valued at approximately $38,000. NBC Securities Inc. lifted its holdings in Telefonaktiebolaget LM Ericsson (publ) by 258.1% in the first quarter. NBC Securities Inc. now owns 10,744 shares of the communications equipment provider’s stock valued at $59,000 after buying an additional 7,744 shares during the period. Lake Street Advisors Group LLC acquired a new position in Telefonaktiebolaget LM Ericsson (publ) in the fourth quarter valued at approximately $64,000. Dorsey & Whitney Trust CO LLC lifted its holdings in Telefonaktiebolaget LM Ericsson (publ) by 31.2% in the third quarter. Dorsey & Whitney Trust CO LLC now owns 13,457 shares of the communications equipment provider’s stock valued at $65,000 after buying an additional 3,201 shares during the period. Finally, 626 Financial LLC acquired a new position in Telefonaktiebolaget LM Ericsson (publ) in the fourth quarter valued at approximately $72,000. 7.99% of the stock is owned by institutional investors.

Telefonaktiebolaget LM Ericsson (publ) Price Performance

The company’s fifty day moving average is $5.38 and its two-hundred day moving average is $5.34. The firm has a market capitalization of $16.42 billion, a price-to-earnings ratio of -6.75 and a beta of 0.76. The company has a quick ratio of 0.92, a current ratio of 1.20 and a debt-to-equity ratio of 0.30.

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.