ZTE Shares Fall Sharply After Third-Quarter Earnings Miss

Dow Jones
2024-10-22
 

By Jiahui Huang

 

Shares of ZTE fell sharply after the Chinese telecom-equipment maker reported lower third-quarter earnings, missing market expectations.

The company's shares fell 4.45% to 30.30 Chinese yuan, equivalent to US$4.26, in Shenzhen early Tuesday, while its Hong Kong-listed shares dropped 6.8% to 19.62 Hong Kong dollars, equivalent to US$2.52.

ZTE said late Monday that third-quarter net profit dropped 8.2% from a year earlier to 2.17 billion yuan and total revenue fell 3.9% to 27.56 billion yuan.

Citi said ZTE's earnings were a miss, adding that the revenue decline was mainly due to the domestic carrier network business amid declining capital expenditures, analysts Louis Tsang and Kyna Wong said in a note.

Continued cuts to capital expenditures by telecommunications operators may weigh on ZTE's domestic carrier business, but the consumer segment could post higher revenue growth, Citi said.

However, Citi said one bright note was that ZTE maintained its cost control, with the company posting a 7% drop in operating expenses.

Looking ahead, Citi said it maintained a constructive view on domestic artificial intelligence server opportunities and the overseas carrier business for ZTE.

Citi has a HK$19.80 price target on the company's Hong Kong-listed shares.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

October 21, 2024 22:36 ET (02:36 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10