Ericsson Cuts 2017 Marketplace Forecast As Q2 Income Lag Consensus

“Ericsson doesn’t deliver, they lose versus the market and the market is weak,” said Inge Heydorn, fund manager at Sentat Asset Management, which has no position in Ericsson shares.
The firm said it was targeting cost cutting to achieve an annual run rate reduction of at least 10 billion crowns by mid-2018.
Mobile telecom equipment maker Ericsson reported a heavier than expected second-quarter loss on Tuesday and lowered its mobile infrastructure market forecast, dealing a fresh blow to the Swedish firm as it tries to restore profitability.
Sales at Ericsson, one of the top global mobile networks equipment makers, were 49.9 billion crowns, below a consensus forecast of 50.5 billion, while the gross margin came in at 27.9 percent versus the 28.4 percent seen by analysts.
Ericsson is facing mounting competition from China’s Huawei and Finland’s Nokia as well as weak emerging markets and falling spending more broadly by telecoms operators with demand for next-generation 5G technology still years away.

Read more on: