ADVFN - Advanced Financial Network.
HOME» NYSE » A » T Stock Price » T Stock News

Att Share News

 At&t Stock Price
T Stock Price
 At&t Stock Chart
T Stock Chart
 At&t Stock News
T Stock News
 At&t Company Information
T Company Information
 At&t Stock Trades
T Stock Trades

Ericsson Earnings Miss Expectations as Poor Profit Margins Weigh

By Gustav Sandstrom and Sven Grundberg STOCKHOLM--Swedish network equipment vendor Ericsson (ERIC) Wednesday reported a bigger-than-expected drop in second-quarter earnings as its profitability was stunted by a high number of low-margin sales, but said it expects improvement towards the end of this year. Ericsson's net profit fell to 1.11 billion Swedish kronor ($159 million) from SEK3.12 billion in the same quarter last year, with the closely watched gross margin down to 32.0% from 37.8% a year ago. Analysts polled by Dow Jones Newswires had expected net profit of SEK1.67 billion and a gross margin of 33.3%. Ericsson has managed to maintain its position as the world's biggest network equipment vendor througout the global financial crisis, helped by its strong position in the fast-growing U.S. market. Still, the company's profits have been hit in past months by a high proportion of low-margin sales, and as a result of reluctance by telecom operators in Europe to invest in new gear amid the ongoing financial crisis. Revenue from services, which typically have lower margins than sales of new network equipment, made up a larger part of Ericsson's sales mix in the second quarter. Profit also suffered as a result of a large number of low-margin contracts for network upgrades in Europe, that Ericsson has taken on to regain market share in the region. Net sales in the quarter were down to SEK55.32 billion from SEK54.77 billion the same quarter last year, against expectations for SEK54.5 billion. Ericsson's Global Services and Support Solutions businesses saw strong demand, but networks sales fell from a year earlier, mainly due to slow sales of CDMA technology equipment, lower activity in China, and slow third-generation (3G) technology sales in Russia, the company said. Ericsson's shares are down around 16% so far this year, underperforming a 3.7% rise in the wider Stockholm market amid concerns that its closely-watched gross margin will remain subdued. The shares Tuesday closed at 58.90. Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stock News for Att (T)
DateTimeHeadline
10/23/201419:33:14Will Free Data Become the Next Free Shipping?
10/23/201409:49:25U.S. Hot Stocks: Hot Stocks to Watch
10/21/201417:47:09Correction to AT&T Earnings Preview Story
10/21/201417:35:09AT&T Earnings Still Intertwined with iPhone -- Earnings Preview
10/19/201405:47:20MARKET SNAPSHOT: More Than 1/3 of Dow Stocks To Report This Week
10/17/201415:00:10New iPad Lets Users Swap Data Plans
10/14/201408:36:34Iliad Drops Plan to Acquire T-Mobile US -- 5th Update
10/13/201417:35:47Iliad Drops Plan to Acquire T-Mobile US -- 4th Update
10/09/201420:29:15Pay TV's New Worry: 'Shaving' the Cord
10/07/201404:12:35Spirent Shares Fall as Customer Merger Activity Hits Revenue
10/07/201402:00:11Australia's RBA Holds Rates Steady
09/30/201403:30:14Reserve Bank of India Holds Rate
09/24/201419:56:57BlackBerry Unveils Its Passport Smartphone
09/22/201421:30:21RadioShack Supplier Declined to Help Rescue Effort
09/22/201414:09:34AT&T-Chernin Venture to Buy Fullscreen Stake -- Update
09/22/201411:40:04AT&T Venture Agrees to Buy Majority Stake in Fullscreen
09/22/201411:28:51AT&T-Chernin Joint Venture Agrees to Buy Majority Stake in Fullscreen
09/16/201418:21:44ADR Shares End Higher; Petrobras Shares Trade Actively
09/16/201400:40:05Apple Reports Record Preorders for New iPhone
09/11/201422:20:29Asian Shares Rise as Nikkei Pushes Higher

Att and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad