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Ericsson to Help MasMovil with Network Evolution & Services
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Ericsson (ERIC - Free Report) signed a strategic agreement to provide a broad array of solutions and services to MÁSMÓVIL — the fourth largest Spanish operator. The services would include core network evolution based on Network Functions Virtualization, managed and systems support services, enterprise billing, and deployment, installation and maintenance of fiber to the home.
MÁSMÓVIL subscribers will, thus, gain access to a superior consolidated network and new services like Voice over LTE, Wi-Fi calling and fixed VoIP. MÁSMÓVIL will also be able to offer innovative and flexible service bundles and billing to enterprises.
Of late, Ericsson has been witnessing frequent earnings misses, eroding profitability and steep revenue decline. Particularly, write-downs and restructuring costs have put pressure on its bottom line significantly in recent times.
In its latest earnings report, Ericsson reported a huge non-IFRS loss of SEK 2.42 (27 cents) per share, which compared unfavorably with the Zacks Consensus Estimate of earnings of 3 cents. Not surprisingly, the stock has lost 1.8% over the past one year, as against the Zacks categorized Wireless Equipment industry’s average gain of 12.4%.
The analyst community is showing no favor toward the company either. The Zacks Consensus Estimate for full-year 2017 earnings continues to go south, as two downward estimate revisions have led the same to go down from 29 cents to 27 cents over the past couple of months.
Most of Ericsson’s troubles stem from drying-up investments by major telecom equipment makers across the world. They are investing less in 4G services, and even less in 3G, while waiting for the introduction of 5G networks. Slowdown in spending by wireless carriers is making matters worse.
2016 was a particularly harrowing year for Ericsson. Straight quarters of revenue declines, and contract losses in Italy and Russia marred the company’s top line.
Even now, soft mobile broadband demand and slowdown in emerging markets are adversely affecting Ericsson’s performance. In fact, the company predicts the industry trends and business mix in mobile broadband to prevail this year as well.
To counteract the bleak market outlook, Ericsson rolled out an elaborate restructuring plan in March, in a bid to contain costs and focus on strategic areas. However, it is now facing sky-rocketing restructuring expenses as part of its efforts to turn around the ailing business.The company doubled its full-year 2017 restructuring charges guidance from SEK 3 billion to SEK 6–8 billion.
Doubtless, Ericsson is a leading developer of the 5G standards and might be one of the front-runners who benefit from 5G networks deployments — which will likely commence in 2020. However, till then, it is hard to tell how much more Ericsson will suffer on the bourse.
As of now, we have a Zacks Rank #5 (Strong Sell) on the stock, as we are apprehensive over the impact of these headwinds on the company’s profits and share price in the near term.
Ubiquiti Networks has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 13.3%.
Sonus Networks has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 57.6%.
Sierra Wireless has beaten estimates impressively thrice over the trailing four quarters, with an average positive surprise of 155.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Ericsson to Help MasMovil with Network Evolution & Services
Ericsson (ERIC - Free Report) signed a strategic agreement to provide a broad array of solutions and services to MÁSMÓVIL — the fourth largest Spanish operator. The services would include core network evolution based on Network Functions Virtualization, managed and systems support services, enterprise billing, and deployment, installation and maintenance of fiber to the home.
MÁSMÓVIL subscribers will, thus, gain access to a superior consolidated network and new services like Voice over LTE, Wi-Fi calling and fixed VoIP. MÁSMÓVIL will also be able to offer innovative and flexible service bundles and billing to enterprises.
Of late, Ericsson has been witnessing frequent earnings misses, eroding profitability and steep revenue decline. Particularly, write-downs and restructuring costs have put pressure on its bottom line significantly in recent times.
In its latest earnings report, Ericsson reported a huge non-IFRS loss of SEK 2.42 (27 cents) per share, which compared unfavorably with the Zacks Consensus Estimate of earnings of 3 cents. Not surprisingly, the stock has lost 1.8% over the past one year, as against the Zacks categorized Wireless Equipment industry’s average gain of 12.4%.
The analyst community is showing no favor toward the company either. The Zacks Consensus Estimate for full-year 2017 earnings continues to go south, as two downward estimate revisions have led the same to go down from 29 cents to 27 cents over the past couple of months.
Most of Ericsson’s troubles stem from drying-up investments by major telecom equipment makers across the world. They are investing less in 4G services, and even less in 3G, while waiting for the introduction of 5G networks. Slowdown in spending by wireless carriers is making matters worse.
Ericsson Price, Consensus and EPS Surprise
Ericsson Price, Consensus and EPS Surprise | Ericsson Quote
2016 was a particularly harrowing year for Ericsson. Straight quarters of revenue declines, and contract losses in Italy and Russia marred the company’s top line.
Even now, soft mobile broadband demand and slowdown in emerging markets are adversely affecting Ericsson’s performance. In fact, the company predicts the industry trends and business mix in mobile broadband to prevail this year as well.
To counteract the bleak market outlook, Ericsson rolled out an elaborate restructuring plan in March, in a bid to contain costs and focus on strategic areas. However, it is now facing sky-rocketing restructuring expenses as part of its efforts to turn around the ailing business.The company doubled its full-year 2017 restructuring charges guidance from SEK 3 billion to SEK 6–8 billion.
Doubtless, Ericsson is a leading developer of the 5G standards and might be one of the front-runners who benefit from 5G networks deployments — which will likely commence in 2020. However, till then, it is hard to tell how much more Ericsson will suffer on the bourse.
As of now, we have a Zacks Rank #5 (Strong Sell) on the stock, as we are apprehensive over the impact of these headwinds on the company’s profits and share price in the near term.
Stocks to Consider
Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. , Sonus Networks, Inc. and Sierra Wireless, Inc. , each holding a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ubiquiti Networks has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 13.3%.
Sonus Networks has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 57.6%.
Sierra Wireless has beaten estimates impressively thrice over the trailing four quarters, with an average positive surprise of 155.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>