It is a challenging moment for Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC).The giant company experienced a second-quarter loss, a matter that has raised much speculation among most of the concerned parties. Some people believe the reported $114.6 million loss resulted from irresponsibility on the part of the management. Last year during around the same period, the top provider reported a profit. The inconsistency is something that is starting to worry all those that have invested with the company.
Looking at the matter from a per share basis, the provider has encountered a 3 cents loss. The earnings adjusted for the amortization costs and restructuring stood at 2 cents per share.
The saddest part is that the results haven’t played up to the Wall Street expectations. A number of top analysts that delved into the matter have given their word. Four of them take the strong stand that the figure stood at 5 cents per share. The $5.67 billion registered by the telecommunications equipment provider has raised hot debates among the concerned parties. It doesn’t seem clear where the company is headed.
It goes without saying that proper strategizing is needed now much more than ever. It cannot be taken for granted that the provider missed the Street forecasts in the period. The start of the year wasn’t somehow attractive considering that the provider gained by 25 percent. From there the stock started falling. At the moment it has decreased by slightly more than 6 percent according to Yahoo.
Everyone might be pointing a finger on one thing or the other. However, everyone also needs to be rational in passing on judgment. Every company at one point or the other encounters a rough patch. What matters is the way it picks itself up to face up to the challenges.
Ericsson has got one of the most amazing track records and it is obvious it will gain momentum and start competing effectively. The shareholders will get real value for their money and it won’t take long. One of the company’s top executives while speaking to some news reporters referred to the current challenge as a passing cloud.