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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