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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (1548)	4/29/1998 8:44:00 PM
From: Sawtooth	Read Replies (1) \| Respond to of 5390

Some analyst viewpoints on the Ericy report from InstantView: Wednesday April 29, 7:09 pm Eastern Time INSTANT VIEW - Analysts on Ericsson's Q1 results STOCKHOLM, April 29 (Reuters) - Following are analysts' comments on Swedish telecoms group Ericsson's first quarter earnings results, in which it reported a pre-tax profit of 2.64 billion crowns. MIKA PALORANTA AT MERITANORDBANKEN ''This was clearly a negative surprise and a really weak performance. ''What I've seen so far is only negative. They had even a 400 million crown forex gain in this quite weak result. "I guess the Infocom division is weighing on the result. ''It is possible that Nokia has already gained market share in the digital handsets during this year. ''The order inflow at 46.17 billion crowns was below my expectations which means that the mobile systems have not grown at the same pace they did earlier. "I would expect the share to fall more." SEAN FAUGHNAN, JP MORGAN: ''The sales looked good for the different business units, but the pre-tax profit was much lower than anyone expected. ''The big question is why. The only thing Ericsson mentions in the report is that they made provisions for market risk. What is this, and what does it mean? "We are still wondering and waiting for more information." DOUGLAS SMITH, SALOMON SMITH BARNEY: ''The profit is hard to understand. The volumes were in line with my expectations, as was the gross margin. What needs to be looked at more closely are the provisions for market risk and customer financing.'' ANITA FARROW, MERRILL LYNCH: ''The profit was actually better than we had expected, even if the market's expectations were higher. We had expected a pre-tax profit of 2.3 billion crowns.'' ANGELA DEAN, MORGAN STANLEY DEAN WITTER: ''All production units showed good sales growth even if revenues from mobile phone sales grew somewhat less than we had expected. ''There were big differences between the forecasts which came out before the reports. Ericsson's results are always hard to predict but this is the first time all the analysts ended up so far out with the average forecast. ''It's hard to say what that's due to. Ericsson doesn't give you much to go on in the report. They mention reserves for market risk, but what is that? It could be anything. We're waiting for more information from the company.'' MARTTI LARJO, EVLI: ''Otherwise it is pretty good, but the result figure was a little weaker than expected. Ericsson has always strong seasonal changes.'' ''Net sales are in line but the first quarter is just weaker than the rest of the year.'' ''I do not think there have been significant changes in mobile market shares, but it seems the difference between market shares of Ericsson and Nokia is steadying from last year.'' ''There will not be major changes in the share price after the initial shock.'' --------------------------------------------------------------------------------