NEW YORK (TheStreet) -- Shares of VimpelCom Ltd. VIP are down -7.54% to $7.64 after the mobile group said today that it expected sales and core profit to fall this year due to tough price competition in Italy and efforts to defend its market share in Russia, Reuters reports.
The company reported a first quarter decline of 10% in revenues to $5 billion from a year ago, and an 11% drop in earnings before interest, taxation, depreciation and amortisation to $2.1 billion.
Net profit plunged 90% to $39 million, a result of a higher effective tax rate and a $92 million foreign exchange loss.
TheStreet Ratings team rates VIMPELCOM LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate VIMPELCOM LTD (VIP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: