Why Telefonaktiebolaget LM Ericsson Stock Plunged Today

Shares of Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) fell 16.7% on Tuesday, after the networking and telecommunications equipment company announced disappointing second-quarter results.

Adjusted quarterly revenue declined 8% year over year to 49.9 billion Swedish kronor and declined 13% adjusted for comparable units and foreign currency exchange. That translated to a net loss of $1 billion kronor (or roughly $120 million), or roughly 0.30 krona per diluted share. On an adjusted basis, Ericsson generated net income of 0.17 krona per share, or roughly $0.02, falling well short of Wall Street's consensus estimates for an adjusted profit of $0.05 per share.

IMAGE SOURCE: ERICSSON.

Source: Fool.com