Ericsson issued an unexpected profit warning today that sent the telecom vendor's share price (and a few of its rivals') tumbling nearly 30 percent. Ericsson cut its guidance for Q3 citing a fall in sales for its mobile network upgrades. The company expects the slump to continue into 2008. Sales for Q3 were about $6.7 billion, well below the expected $7.9 billion. Operating income fell to $866.1 million, a huge 38 percent drop from the expected $1.4 billion.
For more on Ericsson's Q3:
- read this article [1] from the WSJ (sub. req.)
Links:
[1] http://www.forbes.com/markets/2007/10/16/ericsson-alcatel-lucent-markets-equity-cx_vr_1016markets06.html