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Highlights
- Ericsson (NASDAQ:ERIC) posted an EBIT of SEK56.3 billion (Swedish Krona) in Q3, FY21.
- Ericsson plans to cut its operations in China after huge sales decline.
- The Travelers Companies, Inc’s. (NYSE:TRV) total revenue surged 6% YoY in Q3, FY21.
Stocks of Ericsson (NASDAQ:ERIC) and The Travelers Companies, Inc. (NYSE:TRV) were trending on Wall Street Tuesday after reporting their quarterly earnings. The former declined around 3%, while the latter was up more than 2% in morning trading.
The ERIC stock traded at US$11.81, down 3.28%, while the TRV stock was priced at US$156.58, up 2.42%, at 10:06 am ET from their previous closing price.
Let's look at the quarterly earnings of the companies.
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Ericsson (NASDAQ:ERIC)
Ericsson is a telecommunications company and a leading provider of 5G network equipment in the US. It is based in Stockholm, Sweden.
It reported strong third-quarter core earnings that topped analysts' expectations. The earnings were driven by robust demand for 5G equipment globally, despite losses in the Chinese market.
The net sales were SEK56.3 billion (Swedish Krona) in Q3, FY21, compared to SEK57.5 billion in the same quarter of the previous year.
Its EBIT was SEK8.8 billion compared to SEK8.6 billion in the year-ago quarter. Analysts expected its EBIT to be around SEK7.85 billion, the Refinitiv data showed.
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The company's net income came in at SEK5.8 billion, or SEK1.73 per diluted share, compared to SEK5.6 billion, or SEK1.61 per diluted share in Q3, FY20. At the end of the period, the company's net cash was SEK55.7 billion, representing an increase of 34% YoY.
Its market cap is US$39.19 billion, the P/E ratio is 17.29, and the forward P/E one year is 16.96. Its EPS is US$0.68. The stock saw the highest price of US$15.31 and the lowest price of US$10.88 in the last 52 weeks. Its share volume on October 18 was 5,824,574.
Ericsson plans to cut its China operations after a huge sales decline in one of its biggest markets, the company said on Tuesday. The decline was caused by Sweden's ban on China's Huawei from selling 5G gear.
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The Travelers Companies, Inc. (NYSE:TRV)
The Travelers Companies is an insurance company based in New York. It offers various insurance products like property insurance, casualty insurance, personal insurance, etc.
The total revenue was US$8.80 billion in Q3, FY21, an increase of 6% YoY. Its net income came in at US$662 million, or US$2.62 per diluted share, compared to US$827 million, or US$3.23 per diluted share in the same quarter of the previous year. Analysts surveyed by Reuters projected its diluted EPS to be US$1.67.
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The core income, or excluding items, the company's adjusted earnings came in at US$655 million, or US$2.60 per diluted share, compared to US$798 million, or US$3.12 per diluted share in Q3, FY20.
The firm has a market cap of US$39.43 billion, a P/E ratio of 10.64, and a forward P/E one year of 12.91. Its EPS is US$14.86. The 52-week highest and lowest stock prices were US$163.29 and US$111.69, respectively. Its trading volume was 1,599,266 on October 18.
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Bottomline
The ERIC and TRV stocks witnessed significant growth in recent days. For instance, the stock value of ERIC ticked up 1.41% YTD, while the TRV stock grew 12.7% YTD. However, investors should closely evaluate the recent developments in the market and the stocks before investing.
