Report to be released at approximately 7:00 AM CET on January 24, 2025 One live video webcast for analysts, investors, and journalists at 9:00 AM CETSTOCKHOLM, Jan. 9, 2025 /PRNewswire/ -- Ericsson's (NASDAQ: ERIC) financial report for the fourth quarter 2024 will be published at approximately 7:00 AM CET on January 24, 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 w ...

Company Overview - Aduna is a new venture formed by global telecom providers and Ericsson, aimed at revolutionizing the network API market [1][7] - The company's name, Aduna, is derived from the Latin word meaning "many entities uniting as one" [1] - Aduna's initial partners include major telecom operators such as América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon, and Vodafone [7] Leadership and Vision - Anthony Bartolo has been appointed as the CEO of Aduna, bringing over 30 years of experience in scaling global businesses and driving commercial strategies [2] - Bartolo previously served as COO at Vonage and Bandwidth, and as Executive Vice President and Chief Product Officer at Avaya, where he led the transition to a SaaS-based business model, resulting in an 11-fold increase in annual recurring revenue [3] - Bartolo's leadership at Tata Communications included expanding the company's global footprint and securing strategic partnerships [4] - Aduna's vision is to provide developers with ubiquitous access to open, programmable network functionality through common APIs, enabling global hyperscale innovation and value creation for enterprises and the telecom industry [5][6] Business Strategy and Market Impact - Aduna will combine and sell network APIs globally, aiming to make new applications work seamlessly across any network, thereby accelerating developer innovation [5] - The venture will provide network APIs to a broad ecosystem of developer platforms, based on the existing CAMARA APIs, which are widely used across the industry [5] - By offering standardized network APIs, Aduna aims to enhance user experiences, open new revenue streams, and drive industry growth [7] - The venture is expected to close later this year, pending regulatory approvals and customary conditions [6] Industry Collaboration - Aduna represents a collaboration between Ericsson and leading global telecom operators, signaling a unified effort to redefine the telecom industry through network APIs [7][8] - The venture is set to usher in a new era of digital services by promoting collaboration and innovation across the telecom ecosystem [7]

Core Insights - Ericsson has renewed its collaboration with Beyon to enhance sustainability initiatives and circular economy practices, focusing on energy-efficient networks in Bahrain [1][4] - The partnership aims to reduce Beyon's environmental footprint, particularly in energy consumption and carbon emissions from Batelco's live networks [2] - Energy-saving software features have led to an average 22% reduction in energy usage at pilot sites, with an additional 18% savings from a new single-antenna solution [3] Collaboration and Impact - The Memorandum of Understanding between Ericsson and Beyon is designed to support Beyon's journey towards a Net Zero future [2][4] - The collaboration has resulted in a 30% reduction in energy consumption for Batelco's network, driven by Ericsson's 5G Radio Access Network solution [9] - An e-waste recycling initiative has been launched under the Ericsson Product Take-Back Program to support Beyon's e-waste management goals [10] Market Position and Performance - Ericsson's innovative solutions are reshaping connectivity and supporting sustainability goals across various sectors [11] - The renewed partnership is expected to generate incremental revenue and strengthen Ericsson's position as a leading telecommunications service provider in the region [12] - Ericsson's shares have increased by 28.9% over the past year, outperforming the industry's growth of 27.4% [13]

Core Viewpoint - Ericsson has received a favorable ruling from the U.S. International Trade Commission regarding its patent infringement claim against Lenovo, which could lead to an import ban on Lenovo's smartphones [1][2]. Group 1: Patent Infringement Case - Ericsson filed a patent lawsuit against Lenovo in Washington, claiming that Lenovo's Moto G, Edge, and Razr models infringed on its wireless communication patents [2]. - The judge found Lenovo at fault for the patent breach, with a final ruling expected from the full commission in April next year [2]. Group 2: Business Implications - The lawsuit highlights the significance of patents in the smartphone industry, where Ericsson relies heavily on patent licensing for revenue [3]. - By enforcing its patents, Ericsson aims to secure fair compensation and reinforce its competitive edge, potentially leading to new licensing opportunities in emerging markets [4]. Group 3: Market Position and Strategy - Ericsson's patent licensing business is performing well, supported by a strong intellectual property rights portfolio [5]. - The company is investing in its Enterprise business and has introduced on-demand network slicing capabilities in Android 14 devices, enhancing application flexibility [5]. Group 4: Network Demand and 5G Development - The demand for mobile broadband has surged, necessitating network tuning and optimization, with Ericsson being a key player in expanding network coverage and upgrading for higher speed [6]. - Ericsson is focusing on 5G development, currently operating 170 live 5G networks across 72 countries, which is expected to drive IoT device adoption [7].

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Core Viewpoint - The article emphasizes the importance of value investing and highlights Ericsson (ERIC) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7]. Valuation Metrics - Ericsson has a P/E ratio of 16.38, which is significantly lower than the industry average of 21.04, indicating potential undervaluation [4]. - The P/B ratio for Ericsson is 3.33, compared to the industry average of 7.51, suggesting a solid valuation relative to its book value [5]. - The P/S ratio for Ericsson stands at 1.16, while the industry average is 1.98, further supporting the notion that Ericsson may be undervalued [6]. Earnings Outlook - The strength of Ericsson's earnings outlook positions it as one of the strongest value stocks in the market, appealing to value investors [7].

6G Technology Development - Ericsson has completed a series of tests for 6G synaesthesia integration and network infrastructure, marking a significant milestone in exploring key 6G technologies [1] - The synaesthesia integration test focused on dual-station A transmission and B reception perception in a non-interference environment, evaluating trajectory tracking and network performance in real-world conditions [2] - The network infrastructure test successfully implemented AI-driven functions, demonstrating the ability to train AI models and perform AI reasoning to predict traffic patterns across different subnets [3] - Ericsson has contributed to key research reports under the IMT-2030 initiative, including studies on 6G wireless system architecture and distributed autonomous network architecture [4] Ericsson's Leadership in 6G - Ericsson's involvement in 6G tests highlights its leadership in 6G research and development, reshaping connectivity across sectors with innovative solutions [5] - The successful test paves the way for advanced, flexible, and customizable 6G network services, boosting the telecom sector's capabilities and laying the foundation for business and community digitization [6] Financial and Stock Performance - Ericsson's advancements in 6G are expected to generate incremental demand for its solutions, leading to higher revenues and improved financial performance [7] - Ericsson's stock price has gained 65.2% over the past year, outperforming the industry's growth of 40.1% [8] Industry Comparison - Plexus Corp (PLXS) delivered an earnings surprise of 20.92% in the last reported quarter and currently sports a Zacks Rank of 1 (Strong Buy) [11][12] - Workday Inc (WDAY) delivered an earnings surprise of 7.36% in the last reported quarter and carries a Zacks Rank 2 [12] - InterDigital Inc (IDCC) has a long-term growth expectation of 17.44% and sports a Zacks Rank of 1, focusing on advanced mobile technologies for wireless communications [13]

Core Insights - Global mobile network data traffic is projected to grow almost 200 percent between 2024 and the end of 2030, with a forecast of 6.3 billion global 5G subscriptions by 2030, of which 60 percent are expected to be 5G Standalone (SA) [1][5] Industry Trends - The growth rate of mobile network traffic data is estimated at 21 percent year-on-year for 2024, but it is still expected to increase almost three-fold by the end of 2030 compared to current levels [2] - The report emphasizes the importance of service differentiation and performance-based opportunities as the industry evolves, with a shift towards high-performing programmable networks [4] Service Provider Insights - Less than 20 percent of the approximately 320 communications service providers (CSPs) currently offering commercial 5G services are utilizing 5G SA, indicating a significant opportunity for growth in this area [5] - The densification of mid-band and 5G SA sites is seen as a key catalyst for realizing the full potential of 5G, including programmable and intelligent network capabilities [5] 5G Network Impact - By the end of 2030, 5G networks are expected to carry about 80 percent of total mobile data traffic, compared to 34 percent by the end of 2024 [6] - Fixed Wireless Access (FWA) is gaining popularity globally, with 52 percent of CSPs in Western Europe now offering speed-based tariff plans, up from 30 percent a year ago [7][8] Future Projections - Global 5G subscriptions are projected to reach almost 2.3 billion by the end of 2024, accounting for 25 percent of all global mobile subscriptions, with 5G subscriptions expected to surpass 4G subscriptions by 2027 [10] - The first 6G deployments are anticipated in 2030, building on the capabilities of 5G SA and 5G Advanced [10] Case Studies - The report includes case studies from T-Mobile (U.S.A.), Elisa (Finland), and stc (KSA), showcasing real-world applications of network slicing and premium FWA services [3][11]

Core Viewpoint - Ericsson has experienced a significant stock surge of 62% over the past year, outperforming the industry growth of 43.2%, and is well-positioned to leverage its competitive 5G product portfolio to enhance its market presence [1] Group 1: Market Position and Performance - Ericsson is the world's largest supplier of LTE technology, holding a substantial market share and establishing numerous LTE networks globally, driven by the increasing demand for mobile broadband and network optimization [2] - The company currently operates 170 live 5G networks across 72 countries, positioning itself for leadership in 5G system development, which is expected to enhance the adoption of IoT devices [3] - Earnings estimates for Ericsson for 2024 have increased by 7.3% to $0.44, indicating positive market sentiment towards the stock [8] Group 2: Strategic Initiatives - Ericsson has signed a five-year contract worth $14 billion with AT&T to modernize its network infrastructure, focusing on deploying an open radio access network (Open RAN) [5] - The company is investing in its Enterprise business, introducing on-demand network slicing capabilities in Android 14 devices to enhance application flexibility and network connectivity [4] - An additional investment of $50 million has been made to increase production at its 5G Smart factory in Lewisville, TX, to meet rising demand for 5G equipment [6][7] Group 3: Challenges and Risks - The competitive landscape in the wireless equipment market is pressuring Ericsson to reduce production costs and selling prices, which may impact profitability [10] - Geopolitical issues and economic uncertainties, particularly in China, are affecting Ericsson's revenue, with a noted decline in the Networks and Digital Services segments [12] - The company is facing challenges from lower capital expenditures from operators in regions like the Middle East, Africa, and India, contributing to revenue declines [12]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the ...