Ericsson(ERIC)

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Ericsson (ERIC) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-05-02 17:00
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...
3 Wireless Stocks Set to Ride on Inherent Sector Strength
ZACKS· 2025-04-29 13:56
The Zacks Wireless Equipment industry is poised to capitalize on the healthy demand trends driven by a fast-track 5G deployment and transition to cloud and fiber network infrastructure upgrades. However, large-scale investments for seamless 5G evolution, margin erosion due to price wars, higher customer inventory levels, inflated raw material costs due to macroeconomic challenges, geopolitical conflicts and uncertain business conditions stemming from tariff wars might erode profitability. Nevertheless, Eric ...
Here is Why Growth Investors Should Buy Ericsson (ERIC) Now
ZACKS· 2025-04-17 17:45
Core Viewpoint - Investors are increasingly seeking growth stocks, particularly in the financial sector, to achieve above-average returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Ericsson (ERIC) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - Ericsson's historical EPS growth rate is 2.3%, but projected EPS growth for this year is 43.7%, significantly surpassing the industry average of 13.6% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing a growth stock's efficiency [5] - Ericsson's S/TA ratio is 0.88, indicating that the company generates $0.88 in sales for every dollar in assets, compared to the industry average of 0.55 [5] Group 4: Sales Growth - Sales growth is another key indicator, with Ericsson expected to achieve a 6% sales growth this year, outpacing the industry average of 5.6% [6] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are crucial, with positive revisions correlating strongly with stock price movements [7] - The current-year earnings estimates for Ericsson have increased by 7.8% over the past month, indicating a positive trend [7] Group 6: Overall Positioning - Ericsson has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]
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 - Quarterly Report
2025-04-16 10:09
Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 April 16, 2025 Commission File Number 000-12033 LM ERICSSON TELEPHONE COMPANY (Translation of registrant's name into English) Torshamnsgatan 21, Kista SE-164 83, Stockholm, Sweden (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or For ...
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 Jumps On Attractive Results, And Shares Deserve To Rise Further
Seeking Alpha· 2025-04-15 22:34
Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector. Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Sign up today for your two-week free trial and get a new lease on oil & gas! April 15th ended up being a pretty good day for shareholders of Telefonaktiebolaget LM ...
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 ...