- Ericsson’s overall adjusted operating margin for Q3 stood at 27.5%, surpassing estimates.
- The Networks division achieved an adjusted operating margin of 20.2%, beating the projected 18.6%.
- Cloud Software & Services reported an adjusted operating margin of 12.5%, exceeding the forecast of 6.73%.
- Total net sales amounted to SEK56.24 billion.
- Networks division net sales were SEK35.42 billion, slightly below the estimate of SEK35.88 billion.
- Within Networks, product sales were SEK26.53 billion against an estimated SEK27.87 billion, while services sales surpassed estimates at SEK8.89 billion compared to SEK8.13 billion.
- Cloud Software & Services recorded net sales of SEK15.35 billion, topping the estimate of SEK14.42 billion.
- Enterprise segment net sales were SEK5.06 billion, under the estimated SEK5.5 billion.
- The adjusted gross margin was 48.1%, with Networks achieving 50.1% against an estimate of 49.1%.
- Cloud Software & Services reported an adjusted gross margin of 43.6%, above the anticipated 40.5%.
- Enterprise division recorded the highest adjusted gross margin at 51.6%.
- Ericsson’s adjusted gross income was SEK27.05 billion, while income after financial items reached SEK14.94 billion.
- Cloud Software and Services demonstrated a 9% increase in sales, fueled by strong growth in core networks.
- The company maintained a solid cash position in Q3 due to consistent recurring cash flow and proceeds from the iconectiv sale.
- Market analysts have issued 8 buy recommendations, 13 holds, and 7 sell ratings.
A look at Telefonaktiebolaget Lm Ericsso Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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’s long-term outlook, as indicated by the Smartkarma Smart Scores, reflects a solid overall performance. With a respectable score across key factors, including Value, Dividend, Resilience, and Momentum, the company demonstrates strength in various areas. The company’s innovative products and services in network equipment and software, catering to a wide range of markets, position it well for future growth and stable returns for investors.
In summary, Telefonaktiebolaget LM Ericsson, a prominent player in network equipment and software development, maintains a positive outlook based on the Smartkarma Smart Scores. With a strong presence in multiple markets and a focus on resilience and growth, the company stands to deliver value and dividends to its shareholders while adapting to changing market dynamics.
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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