ERIC Earnings Prediction
The chart below shows how ERIC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ERIC sees a +4.13% change in stock price 10 days leading up to the earnings, and a +0.27% change 10 days following the report. On the earnings day itself, the stock moves by -4.42%. This data can give you a slight idea of what to expect for the next quarter's release.
ERIC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.94B
-0.47%
5.97%
Gross Margin
46.30%
18.11%
5.44%
Operating Margin
11.81%
53.58%
126.68%
Net Margin
6.28%
113.28%
-134.17%
EPS
0.11
112.94%
-135.48%
No Data Available
ERIC Earnings Analysis
Ericsson American Depositary Shares Corporation (ERIC.O) Earnings Conference Call
Positive
Strong North America Sales Growth: Net sales amounted to SEK 61.8 billion, reflecting strong growth in North America for the second quarter in a row with some customers selectively increasing investments.
IPR Licensing Revenue Growth: IPR licensing revenues increased to SEK 3.5 billion from SEK 2.8 billion in the third quarter last year, marking a significant growth in this segment.
EBITDA Margin Expansion: Adjusted EBITDA increased to SEK 7.8 billion with a margin of 12.6%, indicating significant expansion year-on-year.
Strong Free Cash Flow: Free cash flow was strong at SEK 12.9 billion, showcasing improved profitability and lower working capital resulting from strong focus on inventory and supply chain management.
Untapped Market Potential: The company is seeing significant untapped market opportunity in new use cases that are often overlooked, indicating potential for future revenue growth.
Negative
Organic Sales Decline: Organic sales declined by 1% in Q3, indicating a slowdown compared to previous quarters.
Sales Decline in India: Sales in India saw a significant decline, normalizing after a peak in 2023, impacting overall revenue.
Sales Decline in India: The largest decline in sales was noted in India, where investment levels are normalizing after a peak.
Operating Expenses Increase: Operating expenses increased by SEK 800 million, primarily due to restructuring costs, affecting profitability.
EBITDA Margin Decline: Adjusted EBITDA margin was reported at 46.3%, reflecting a decrease from 39.2% in Q3 last year.
ERIC FAQs
How does ERIC typically perform around its earnings report dates?
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ERIC Earning Call Sentiment
Telefonaktiebolaget LM Ericsson (publ) (ERIC) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
ERIC.O
0.39%Positive
The earnings call reflects a mixed sentiment. Despite strong financial metrics like increased EBITDA and cash flow, uncertainties in enterprise sales and restructuring costs weigh negatively. Analysts' questions highlight concerns over visibility and market conditions, indicating caution. Positive factors such as improved margins and optimistic guidance are tempered by market challenges and restructuring expenses. The lack of specific guidance and unclear responses further contribute to a neutral outlook.
