Ericsson (ERIC) releases preliminary Q3 results that were worse than expected

** charts after guidance **

Ericsson sees Q3 revs below consensus:

• Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of SEK51.1 bln vs. SEK53.62 bln Capital IQ Consensus Estimate.
• Sales declined by -14% YoY, driven by slower development in Segment Networks where sales declined by -19%.
• Negative industry trends from first half 2016, with weaker demand for mobile broadband, especially in markets with weak macro- economic environment, have further accelerated.
• Gross margin declined to 28% (34%) following lower volumes in Segment Networks, lower mobile broadband capacity sales, and higher share of services sales.
• Operating income declined to SEK 0.3 bln (SEK5.1 bln), including restructuring charges of SEK 1.3 bln.