Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ramus who wrote (24829)	3/24/1999 1:02:00 PM
From: Ruffian	Read Replies (2) \| Respond to of 152472

Ericy> Ericsson shares fall amid outlook, job cuts Analysts less-than-enthusiastic with new products By Janet Haney, CBS MarketWatch Last Update: 12:51 PM ET Mar 24, 1999 Movers & Shakers Earnings Surprises STOCKHOLM, Sweden (CBS.MW) -- Ericsson stock drew the ire of investors Wednesday as analysts cut or held their forecasts on the company after it said it expects a tough first quarter and will trim 11 percent of its staff. Morgan Stanley lowered its outlook on the communications equipment manufacturer from a "neutral" to "underperform," after Ericsson (ERICY) said it expects to post lower profits in the first half of 1999. Morgan Stanley also lowered its outlook on first quarter sales growth from 6 percent to 2.1 percent and said its "underwhelmed" by Ericsson's new products for 1999, citing tough competition. In a conference call Tuesday, Ericsson said it plans to cut staff by 11,600, about 11 percent of its work force, over the next two years. See Ericsson conference transcript. Ericsson's U.S.-listed shares slipped 2, or 9 percent, to 20 9/16. Ericsson makes products for wired and mobile communications. CIBC Oppenheimer said in a research note that its rating on the Stockholm-based company remains a "hold." CIBC cited Ericsson's "introduction of uninspiring new phones" may be cause for investors to re-evaluate the company. Analysts at CIBC said it cut its first-quarter estimate from 11 cents to 7 cents a share, three cents lower than the First Call consensus. The 1999 estimate on Ericsson has also decreased from 86 cents to 75 cents a share. The First Call prediction for 1999 is 89 cents a share. CIBC said Ericsson blames its revised first-quarter views on pricing pressure in the handset market, as well as restructuring costs. In addition, Donaldson, Lufkin & Jenrette's maintained its "market perform" rating and said its 12-month target for Ericsson is $25. Its first quarter calculation is 9 cents a share. Yet, analysts from PaineWebber said it's all "much ado about nothing" and kept its "attractive" rating on the company.