ZTE Shares Fall Sharply After Third-Quarter Earnings Miss

Dow Jones10-22

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2477882147?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-10-22 10:36","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2477882147","market":"hk","top_or_hot":-1,"title":"ZTE Shares Fall Sharply After Third-Quarter Earnings Miss","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By Jiahui Huang \n</p>\n<pre>\n \n</pre>\n<p>\n  Shares of ZTE fell sharply after the Chinese telecom-equipment maker reported lower third-quarter earnings, missing market expectations. \n</p>\n<p>\n  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. \n</p>\n<p>\n  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. \n</p>\n<p>\n  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. \n</p>\n<p>\n  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. \n</p>\n<p>\n  However, Citi said one bright note was that ZTE maintained its cost control, with the company posting a 7% drop in operating expenses. \n</p>\n<p>\n  Looking ahead, Citi said it maintained a constructive view on domestic artificial intelligence server opportunities and the overseas carrier business for ZTE. \n</p>\n<p>\n  Citi has a HK$19.80 price target on the company's Hong Kong-listed shares. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Jiahui Huang at jiahui.huang@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  October 21, 2024 22:36 ET (02:36 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>ZTE Shares Fall Sharply After Third-Quarter Earnings Miss</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZTE Shares Fall Sharply After Third-Quarter Earnings Miss\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-22 10:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Jiahui Huang \n\n\n \n\n\n  Shares of ZTE fell sharply after the Chinese telecom-equipment maker reported lower third-quarter earnings, missing market expectations. \n\n\n  The company's shares fell 4.45% ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"000063","symbol_name":"中兴通讯","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2477882147","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477882147","pubTimestamp":1729564560,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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% d","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"000063":"中兴通讯","00763":"中兴通讯"},"translate_title":"中兴通讯第三季度盈利未达预期后股价大幅下跌","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00763":1,"000063":0.9},"content_text":"By Jiahui Huang \n\n\n \n\n\n  Shares of ZTE fell sharply after the Chinese telecom-equipment maker reported lower third-quarter earnings, missing market expectations. \n\n\n  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. \n\n\n  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. \n\n\n  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. \n\n\n  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. \n\n\n  However, Citi said one bright note was that ZTE maintained its cost control, with the company posting a 7% drop in operating expenses. \n\n\n  Looking ahead, Citi said it maintained a constructive view on domestic artificial intelligence server opportunities and the overseas carrier business for ZTE. \n\n\n  Citi has a HK$19.80 price target on the company's Hong Kong-listed shares. \n\n\n \n\n\n  Write to Jiahui Huang at jiahui.huang@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  October 21, 2024 22:36 ET (02:36 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477882147"}