Ericsson Earnings Calls

Q1 2025 Beat
$0.120 (33.33%)
Release date Apr 15, 2025
EPS estimate $0.0900
EPS actual $0.120
EPS Surprise 33.33%
Revenue estimate 61.149B
Revenue actual 55.025B
Revenue Surprise -10.02%
Q4 2024
Release date Jan 28, 2025
EPS estimate $0.210
EPS actual -
Revenue estimate 6.525B
Revenue actual -
Q3 2024 Beat
$0.110 (22.22%)
Release date Oct 15, 2024
EPS estimate $0.0900
EPS actual $0.110
EPS Surprise 22.22%
Revenue estimate 7.053B
Revenue actual 61.794B
Revenue Surprise 776.16%
Q2 2024 Missed
$0.0100 (-80.00%)
Release date Jul 12, 2024
EPS estimate $0.0500
EPS actual $0.0100
EPS Surprise -80.00%
Revenue estimate 5.363B
Revenue actual 59.848B
Revenue Surprise 1,015.98%

Last 4 Quarters for Ericsson

Below you can see how ERIC performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.

Q2 2024 Missed
Release date Jul 12, 2024
Fiscal end date Jun 30, 2024
Price on release $6.68
EPS estimate $0.0500
EPS actual $0.0100
EPS surprise -80.00%
Date Price
Jul 08, 2024 $6.40
Jul 09, 2024 $6.33
Jul 10, 2024 $6.44
Jul 11, 2024 $6.39
Jul 12, 2024 $6.68
Jul 15, 2024 $6.49
Jul 16, 2024 $6.76
Jul 17, 2024 $6.73
Jul 18, 2024 $6.64
4 days before 4.37%
4 days after -0.599%
On release day -2.84%
Change in period 3.75%
Q3 2024 Beat
Release date Oct 15, 2024
Fiscal end date Sep 30, 2024
Price on release $8.53
EPS estimate $0.0900
EPS actual $0.110
EPS surprise 22.22%
Date Price
Oct 09, 2024 $7.55
Oct 10, 2024 $7.45
Oct 11, 2024 $7.51
Oct 14, 2024 $7.54
Oct 15, 2024 $8.53
Oct 16, 2024 $8.48
Oct 17, 2024 $8.28
Oct 18, 2024 $8.50
Oct 21, 2024 $8.46
4 days before 12.98%
4 days after -0.82%
On release day -0.586%
Change in period 12.05%
Q4 2024
Release date Jan 28, 2025
Fiscal end date Dec 30, 2024
Price on release $7.70
EPS estimate $0.210
EPS actual -
Date Price
Jan 22, 2025 $8.75
Jan 23, 2025 $8.90
Jan 24, 2025 $7.62
Jan 27, 2025 $7.73
Jan 28, 2025 $7.70
Jan 29, 2025 $7.59
Jan 30, 2025 $7.72
Jan 31, 2025 $7.49
Feb 03, 2025 $7.47
4 days before -12.00%
4 days after -2.99%
On release day -1.43%
Change in period -14.63%
Q1 2025 Beat
Release date Apr 15, 2025
Fiscal end date Mar 31, 2025
Price on release $8.07
EPS estimate $0.0900
EPS actual $0.120
EPS surprise 33.33%
Date Price
Apr 09, 2025 $7.23
Apr 10, 2025 $7.11
Apr 11, 2025 $7.29
Apr 14, 2025 $7.45
Apr 15, 2025 $8.07
Apr 16, 2025 $7.94
Apr 17, 2025 $8.17
Apr 21, 2025 $8.15
Apr 22, 2025 $8.43
4 days before 11.62%
4 days after 4.46%
On release day -1.61%
Change in period 16.60%

Ericsson Earnings Call Transcript Summary of Q1 2025

Summary of Ericsson's Q1 2025 Earnings Call for Investors

Overall Performance:

  • Ericsson reported stable organic sales in Q1 2025 with significant growth in the Americas (20% YoY).
  • Gross margin reached 48.5%, with an EBITA margin of 12.6%, reflecting strong execution across segments and market areas.
  • Positive developments noted in Cloud Software and Services, marking its first profitable Q1, and advancements in programmable networks.

Market Developments:

  • Matured mobile network investments are highlighted, particularly in North America, serving as a leading indicator for global trends.
  • Sales in Europe, Middle East, and Africa declined by 7% YoY, while Southeast Asia, Oceania, and India faced a 17% drop due to normalized investment levels.
  • The restructuring of the regional framework was mentioned, transitioning into two new market areas.

Segment Breakdown:

  • Networks:
    • Sales increased 6% YoY, with an EBITA margin of 21%.
    • Growth driven primarily by North American contracts and network investment acceleration.
  • Cloud Software & Services:
    • Stable sales in core networks, but a 3% organic decrease overall due to Managed Services performance.
    • Gross margin improved to 39.9%.
  • Enterprise:
    • Overall sales decreased by 1%, with a notable 9% decline in the Global Communications platform as businesses transition toward more profitable segments.

Financials:

  • Net sales for Q1 amounted to SEK 55 billion with reported sales up 3% due to currency benefits.
  • Adjusted EBITA increased by SEK 1.8 billion compared to the previous year.
  • Cash flow of SEK 2.7 billion during the quarter, reflecting prior strong performance.

Outlook:

  • For Q2, sales are expected to follow average seasonal patterns, despite ongoing currency volatility and tariff implications that may affect margins.
  • The company anticipates network gross margins in the range of 48% to 50%.
  • Overall, there remains uncertainty regarding future investments due to macroeconomic conditions, but there is optimism about gradual recovery and increased network spending, particularly in North America.

Tariff Impact:

  • Current tariffs are affecting margins, with a noted 1 percentage point impact expected in Q2.
  • The firm is actively managing its production to mitigate tariff-related risks by expanding its supply chain resilience, including the need for Western production ecosystems for components.

Competitive Landscape:

  • Increased competition from Chinese vendors remains a significant factor in territories outside North America.
  • Despite facing competitive pressures, Ericsson is focused on securing profitable contracts and managing portfolio shifts to maintain margins.

Strategic Focus:

  • Ericsson emphasizes its commitment to advancing programmable networks, enhancing connectivity, and supporting customers in generating new revenue streams through differentiated services.
  • The company expresses confidence in managing short-term market fluctuations while maintaining long-term strategic objectives.

Conclusion:

Investors should consider Ericsson’s performance amid macroeconomic uncertainty, the dynamics of its various market areas, and its strategic advancements as important indicators for the company's future trajectory.

Ericsson Earnings History

Earnings Calendar

FAQ

When is the earnings report for ERIC?
Ericsson (ERIC) has scheduled its earnings report for Jul 11, 2025 before the markets open.

What is the ERIC price-to-earnings (P/E) ratio?
ERIC P/E ratio as of Apr 23, 2025 (TTM) is 162.72.

What is the ERIC EPS forecast?
The forecasted EPS (Earnings Per Share) for Ericsson (ERIC) for the first fiscal quarter 2025 is $0.120.

What are Ericsson's retained earnings?
On its balance sheet, Ericsson reported retained earnings of $55.03 billion for the latest quarter ending Mar 31, 2025.

What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.

Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.

What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
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ABOUT ERICSSON
Ericsson
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. Thi...
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