Barclays Lowers Ericsson Estimates Citing Recessionary Pressures Dragging Q3 Sales (ERIC)
Fri. October 23, 2009; Posted: 07:26 AM
Oct 23, 2009 (SmarTrend(R) News Watch via COMTEX) --
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PowerRating -- 10/23/2009-Barclays Equity Research issued a note to clients discussing Ericsson's (NASDAQ:ERIC) most recent quarterly results adjusting its earnings estimates. Barclays analyst Jeff Kvaal said that ongoing recessionary pressure "pinched CapEx and dragged 3Q sales approximately 10% below estimates," and as a result, Barclays trimmed its low end 2010 estimates now seeing flat revenues growth, down from 2% prior and their "very low end EPS declines from SEK 4.69 to 4.44. A weak USD holds EPS at $0.65." Kvall concluded, "We expect cyclical pressures in 2009 and structural challenges in 2010 to restrain EPS growth." Barclays maintained its "Underweight" rating and target price.
Write to Chip Brian at cbrian@tradethetrend.com
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