- Ericsson’s net sales for Q1 were SEK55.03 billion, slightly below the estimate of SEK55.51 billion.
- Networks net sales reached SEK35.64 billion, close to the projected SEK36.01 billion.
- Within Networks, product sales exceeded expectations with SEK28.06 billion against an estimate of SEK27.28 billion.
- Network services underperformed, recording SEK7.58 billion compared to the expected SEK8.5 billion.
- Cloud Software & Services net sales were SEK12.98 billion, slightly below the estimated SEK13.14 billion.
- Product sales in Cloud Software & Services surpassed expectations with SEK4.72 billion, above the forecast of SEK4.66 billion.
- Cloud Software & Services (Services) net sales recorded SEK8.26 billion, just shy of the projected SEK8.48 billion.
- Enterprise net sales were SEK5.93 billion, nearly meeting the SEK5.94 billion estimate.
- Ericsson’s income after financial items was significantly higher than expected at SEK5.86 billion, compared to the estimate of SEK3.03 billion.
- President and CEO Börje Ekholm described the Q1 performance as solid, emphasizing the company’s ability to maintain competitiveness despite macroeconomic challenges.
- Ericsson achieved a strong adjusted gross margin of 48.5% and an adjusted EBITA margin of 12.6% through effective execution.
- The market analysts’ recommendations for Ericsson included 8 buys, 10 holds, and 9 sells.
A look at Telefonaktiebolaget Lm Ericsso Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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 that develops network equipment and software, is seen to have a mixed long-term outlook based on the Smartkarma Smart Scores. While it scores well in the Dividend category with a score of 4, indicating a positive outlook for dividend payments, it falls short in terms of Momentum with a score of 2, suggesting a lack of positive price trend. The company receives average scores in the areas of Value, Growth, and Resilience, with scores of 3 across the board.
Overall, Telefonaktiebolaget Lm Ericsson’s Smartkarma Smart Scores paint a somewhat stable picture for the company’s future prospects. With a balance of strengths and weaknesses in different aspects such as Dividend and Momentum, investors may need to consider a diversified approach when evaluating this telecommunications equipment and services provider.
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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