- Ericsson’s Q4 adjusted EBIT came in at SEK9.80 billion, below the estimated SEK10.35 billion.
- The networks segment had an adjusted operating margin of 21.4%, surpassing the estimate of 20.7%.
- Net sales reached SEK72.91 billion, slightly above the estimated SEK72.38 billion.
- Networks net sales totaled SEK46.80 billion, exceeding the forecasted SEK46.14 billion.
- Within networks, product sales were SEK36.59 billion, beating the expected SEK36.01 billion.
- Networks services sales were slightly below expectations at SEK10.21 billion, against the SEK10.31 billion forecast.
- Adjusted gross margin stood at 46.3%, higher than the estimated 45.4%.
- The networks segment’s adjusted gross margin was 49.1%, above the expected 48.2%.
- For 2024, the dividend per share was SEK2.85, just above the projected SEK2.83.
- The first-quarter forecast for networks adjusted gross margin is between 47% and 49%, around the estimated 47.6%.
- Ericsson anticipates first-quarter sales growth in line with their three-year average.
- The CEO has observed signs of stabilization in the RAN market and noted strong North America networks sales growth in Q4.
- The company is making progress toward its long-term EBITA goal, aiming for continued benefits from product leadership and energy efficiency in 2025.
- In enterprise, the focus will remain on stabilizing commercial performance and growth in mission-critical and enterprise private networks.
- Current analyst ratings include 8 buys, 9 holds, and 10 sells.
A look at Telefonaktiebolaget Lm Ericsso Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Telefonaktiebolaget Lm Ericsson, a leading network equipment and software developer, is showing a promising long-term outlook according to Smartkarma Smart Scores. With a strong momentum score of 5, the company seems to be gaining traction in the market. Additionally, its resilience score of 4 suggests that Ericsson is well positioned to weather economic uncertainties.
Furthermore, Ericsson’s above-average dividend score of 4 indicates a commitment to rewarding its shareholders. While the growth and value scores of 3 suggest some room for improvement, overall, the Smart Scores paint a favorable picture for Telefonaktiebolaget Lm Ericsson’s future prospects.
Summary of the company: Telefonaktiebolaget LM Ericsson develops and manufactures network equipment and software, and offers services for network and business operations. They also provide products for the enterprise, cable, mobile platform, and power module markets.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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