NEW YORK (TheStreet) -- Ericsson (ERIC) - Get Report stock is plunging by 14.72% to $8.31 on heavy volume in mid-afternoon trading on Thursday, following the release of the company's 2016 first quarter financial results.

Before the market open, the Swedish telecom equipment giant reported adjusted earnings of 87 cents per share on revenue of 52.2 billion Swedish Krona.

Analysts had been looking for earnings of $1.04 per share on revenue of 54 billion Swedish Krona, according to Barron's.

The shortfall "makes us worry about Ericsson's ability to ever be run tightly and improve profitability sustainably," analysts at Bernstein wrote in a note, Bloomberg reports.

Additionally, the company is reorganizing into five business units and a separate customer-service unit. Restructuring charges are anticipated to rise to between 4 billion Swedish Krona and 5 billion Swedish Krona, up from earlier estimates for charges between 3 billion and 4 billion Swedish Krona. 

About 10.90 million shares of Ericsson have been traded so far today, well above the company's average trading volume of roughly 3.63 million shares per day. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Ericsson's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and attractive valuation levels outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: ERIC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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