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Here is Why Growth Investors Should Buy Ericsson (ERIC) Now
ZACKS· 2025-04-17 17:45
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...
All You Need to Know About Ericsson (ERIC) Rating Upgrade to Buy
ZACKS· 2025-04-16 17:00
Ericsson (ERIC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a cha ...
How Ericsson Stock Stands Out in a Strong Industry
ZACKS· 2025-04-16 15:45
One stock that might be an intriguing choice for investors right now is Ericsson (ERIC) . This is because this security in the Wireless Equipment space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Wireless Equipm ...
Ericsson(ERIC) - 2025 Q1 - Earnings Call Transcript
2025-04-16 03:41
Financial Data and Key Metrics Changes - Organic sales were stable year-on-year, with reported sales increasing by 3% to SEK 55 billion, including a currency benefit of SEK 1.8 billion [15][16] - Gross margin improved to 48.5%, up from 42.7% last year, while EBITA margin was 12.6% [16][18] - Adjusted EBITA increased by SEK 1.8 billion to SEK 6.9 billion, supported by increased gross income [17][18] Business Line Data and Key Metrics Changes - In Networks, sales increased by 6% year-on-year to SEK 35.6 billion, with a 3 percentage point organic sales increase [19][20] - Cloud Software and Services saw stable sales, with organic sales decreasing by 3% [22] - Enterprise sales decreased by 1%, with organic sales down 7%, but Enterprise Wireless Solutions grew by 20% [23][24] Market Data and Key Metrics Changes - Sales in the Americas increased by 20% year-over-year, while sales in Europe, Middle East, and Africa declined by 7% [10][12] - Sales in Southeast Asia, Oceania, and India decreased by 17% year-over-year due to normalized operator investment levels [13] - Northeast Asia experienced a slowdown in sales due to reduced customer investments in 5G markets [14] Company Strategy and Development Direction - The company is focusing on strengthening its leadership in mobile networks and developing programmable networks with differentiated connectivity [5][8] - There is a strategic emphasis on controlling pricing and spending to navigate macroeconomic challenges [8][34] - The company aims to leverage its competitive position in Mobile Networks and anticipates stabilization in the Enterprise segment during 2025 [32][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic turmoil and tariffs on the industry but expressed confidence in the company's resilience and strategic positioning [8][27] - There is increased uncertainty in forecasts due to global turmoil, but management expects sales to align with average seasonal trends in Q2 [28][30] - The company remains optimistic about the recovery in North America, which is often a leading indicator for other markets [33][34] Other Important Information - The company reported a cash flow of SEK 2.7 billion, reflecting a slight decline compared to last year due to seasonal factors [25][26] - The company is actively working on cost reductions to offset inflationary pressures in a flat RAN market [85][86] Q&A Session Summary Question: Impact of tariffs on business - Management explained that the 1 percentage point impact from tariffs is related to material flow and production diversification across regions [40][41] Question: Balancing investments amid uncertainty - Management noted that despite uncertainty, the need for cost-effective high-performance networks continues to grow, driven by increasing data traffic [48][49] Question: Visibility on customer demand in the second half of the year - Management indicated that while they do not provide full-year guidance, they expect slight growth in the RAN market, particularly in India and other parts of Asia [62][63] Question: Competitive trends outside the U.S. - Management acknowledged increased competition from Chinese vendors but noted mixed results in market share gains and losses [118][119]
Ericsson Q1 Earnings Beat Estimates on Higher Revenues
ZACKS· 2025-04-15 16:05
Ericsson (ERIC) reported mixed first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same. The company reported a revenue improvement year over year, driven by strong demand in the Networks Segment. Higher IPR licensing revenues, cost optimization and a robust portfolio boosted the gross margin. A healthy increase in the free cash flow, backed by improvement in working capital, is a tailwind. However, weakness in the Middle East, Africa, South East ...
Ericsson reports first quarter results 2025
Prnewswire· 2025-04-15 05:19
STOCKHOLM, April 15, 2025 /PRNewswire/ --Strategic highlights – solid momentum in technology leadership and programmable networks   Extending technology leadership with expanded high-performing and energy-efficient product portfolio.   First high-performing programmable networks partnership for Asia Pacific with Telstra announced.   Announced network API fraud detection deployment by all three USA operators and further Aduna partnerships.  First quarter highlights – strong growth in gross income and margins ...
ERIC to Upgrade CelcomDigi's Network System: Will it Aid the Stock?
ZACKS· 2025-04-08 17:10
Ericsson (ERIC) recently inked recently inked a Memorandum of Understanding (MoU) with CelcomDigi Berhad to enhance and expand the latter’s autonomous network operations in Malaysia. With this collaboration, the largest mobile operator in Malaysia aims to deliver superior user experiences across its extensive network infrastructure, leveraging Ericsson’s AI-driven network analytics.With the rising consumer expectations and the growing complexity of mass 5G adoption, communication service providers are becom ...
Ericsson and Lenovo settle patent litigation
Prnewswire· 2025-04-03 15:00
Settlement partially resolves patent licensing dispute between the parties, with financial impacts expected to be recognized from Q2 2025 The parties further agree on arbitration to fully and finally resolve the remaining patent licensing dispute between the parties Settlement ends all ongoing patent-related legal proceedings between the parties STOCKHOLM, April 3, 2025 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) and Lenovo have reached a settlement to resolve their patent licensing dispute over a multi-year, ...
Invitation to media and analyst briefing for Ericsson Q1 2025 report
Prnewswire· 2025-04-01 06:18
STOCKHOLM, April 1, 2025 /PRNewswire/ -- Ericsson's (NASDAQ: ERIC) financial report for the first quarter 2025 will be published at approximately 7:00 AM CEST on April 15, 2025. The company will issue a press release with the complete financial report attached, including tables, in PDF format. Following publication of the press release, the financial report will be available on Ericsson's website: www.ericsson.com/en/investors/financial-reports/interim-reports President and CEO Börje Ekholm and CFO Lars San ...
ERIC & OneLayer Unveil New Solution for Private Cellular Networks
ZACKS· 2025-03-25 17:01
Ericsson (ERIC) recently collaborated with OneLayer to introduce an advanced Zero Touch Zero Trust Network Access (ZT-ZTNA) solution for enterprises. With a focus on automating device onboarding in sectors such as utilities, the solution is designed to modernize infrastructure and maximize the return on investment in private cellular networks.ERIC’s ZT-ZTNA SolutionThe state-of-the-art ZT-ZTNA solution will play a critical role in advancing device visibility, management and security in modern private networ ...