Why Ericsson Stock Is Tanking Today

Shares of Ericsson (NASDAQ: ERIC) are tanking on Friday, down by 10% as of 11:40 a.m. EDT, after the company reported second-quarter earnings. The results came in below expectations, due in part to weakness in China.

Revenue in the second quarter came in at 54.9 billion Swedish kronor ($632.7 million), which missed the consensus estimate of 57.6 billion SEK. That all resulted in earnings per share of 1.1 SEK ($0.13), compared with the 1.23 SEK per share that analysts were expecting. The telecommunications company, which provides equipment and infrastructure, attributed the shortfall to weak demand in China.

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Source Fool.com