With earnings season beginning to heat up, a couple of well-known stocks suffered setbacks in Thursday's midday action following the release of their quarterly results. Ericsson ( NASDAQ: ERIC ) and ConAgra Brands ( CAG ) both retreated after their financial figures were poorly received by the market.
Analyst commentary represented another major catalyst. A. O. Smith ( AOS ) dropped following a downgrade, while Ritchie Bros. ( RBA ) rose in the wake of an upgrade.
Decliner
Ericsson ( ERIC ) lost ground in the wake of its quarterly report . Worries about supply chain costs prompted a 9% midday slide.
The Swedish telecom company revealed revenue that rose 14% from last year. However, earnings growth was hampered by margins that narrowed from last year.
Earnings news also put pressure on ConAgra Brands ( CAG ). Shares of the packaged food maker fell nearly 9% after the company gave a mixed quarterly report and provided disappointing guidance .
CAG beat expectations with its bottom-line total, although revenue growth was sluggish at 6%. Looking ahead, the company projected adjusted EPS growth of 1% to 5%, compared to a consensus forecast of about 8%.
Elsewhere, a downgrade sparked selling in A. O. Smith ( AOS ). Baird lowered its rating on the maker of water heaters and boilers to Neutral from Outperform, citing caution about the sector and competitive pressures.
The news sent AOS lower by 4% in intraday action.
Gainer
Ritchie Bros. ( RBA ) showed notable strength in intraday trading, with shares rising 9% after an upgrade from Bank of America. The firm raised its rating on RBA to Buy from Neutral , saying it is well-positioned for the next auction cycle.
"RBA is the largest auctioneer of industrial equipment in the world," analyst Michael Feniger detailed in a note. "We believe RBA's earnings prospects are likely to improve as the tight used equipment thaws into 2023 and growth initiatives start to bear fruit."
For details on the rest of the day's biggest winners and losers, head over to Seeking Alpha's On The Move section .
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Hot Stocks: ERIC, CAG drop on earnings news; AOS downgrade; RBA upgrade