- Ericsson 1Q Net Sales missed the estimates, with sales reaching only SEK53.33 billion against the expected SEK54.83 billion.
- Networks net sales were SEK33.72 billion, falling short of the mentioned SEK35.02 billion estimate.
- Network (products) sales amounted to SEK25.40 billion, a little below the projected SEK26.59 billion.
- Meanwhile, Network (services) net sales were SEK8.32 billion, slightly under the SEK8.5 billion estimate.
- Cloud Software & Services net sales also missed target, achieving SEK13.05 billion compared to the predicted SEK13.19 billion.
- However, Cloud Software & Services (Products) net sales surpassed expectations, reaching SEK4.53 billion against the estimated SEK4.12 billion.
- Cloud Software & Services (Services) net sales were SEK8.52 billion, under the SEK8.85 billion estimate.
- Enterprise net sales amounted to SEK5.97 billion, marginally missing the SEK6.21 billion estimate.
- The Networks adjusted gross margin was better than expected at 44.3%, against the estimated 41%.
- Income after financial items was surprisingly high, amounting to SEK3.63 billion, considerably more than the SEK1.18 billion estimate.
- Current recommendations include 11 buys, 9 holds, and 8 sells.
A look at Telefonaktiebolaget Lm Ericsso Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 company specializing in network equipment and software, as well as services for network and business operations, shows promise for long-term growth and stability. With a strong emphasis on dividend payout, scoring a perfect 5 in this category, Ericsson demonstrates a commitment to sharing profits with its shareholders. Additionally, the company scores well in resilience and momentum, indicating its ability to weather market fluctuations and maintain positive stock performance in the future. While growth is an area for improvement, the company’s overall outlook remains optimistic due to its robust performance in other key areas.
Despite facing some challenges in terms of growth potential, Telefonaktiebolaget Lm Ericsson showcases strength in important areas such as dividend payout, resilience, and momentum. With a diverse portfolio covering enterprise, cable, mobile platform, and power module markets, Ericsson’s strategic positioning and commitment to rewarding shareholders bode well for its long-term prospects. Investors may find this telecommunications company attractive for its consistent dividend payments and overall resilience in navigating market uncertainties.
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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