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By EquityPandit

TECHNOLOGY

Ericsson Falls Short of Estimates as Sales in India Struggle

Sales in India have dropped, with 5G spending slowing after a big 2022 rollout.

Ericsson AB’s earnings missed analysts’ expectations in the fourth quarter, as sales to India did not recover as anticipated.

Ericsson’s adjusted earnings for Q4 were 9.8 billion Swedish kronor ($894 million), up 33% from last year, but missed analysts’ estimate of 10.3 billion kronor. The company’s operating margin was 13.4%, below the forecast of 14.03%.

Ericsson and Nokia face a weak telecom equipment market, with many operators delaying network upgrades.

Ericsson has focused on cost-cutting and expanding in the US and India, leading to a 60% share rise over the last year.

While the Radio Access Network (RAN) market may see short-term improvement, the long-term outlook is still weak.

Ericsson’s net sales rose 1% to 72.9 billion kronor in Q4, with North America driving growth, aided by a $14 billion contract with AT&T. Sales in India have dropped, with 5G spending slowing after a big 2022 rollout.

Ericsson expects some recovery in India as Bharti Airtel and Vodafone Idea increase investment, though no major rebound is expected.

Europe is showing slight growth, with a new contract from Spanish carrier Masorange for building an OpenRAN-compliant network.

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