Ericsson Earnings Miss Estimates As Costs Dent Margins

Reuters2022-10-20

Swedish telecom equipment maker Ericsson on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and logistics costs.

The company's quarterly adjusted operating earnings fell to 7.1 billion Swedish crowns ($633.05 million) from 8.8 billion crowns a year earlier, missing analysts' mean forecast of 8.73 billion, according to Refinitiv data.

Ericsson's quarterly revenue, however, rose to 68 billion crowns from 56.3 billion a year earlier, beating analysts' average estimate of 66.25 billion.

Gross margin fell to 41.4% from 44.0% as it was also hit by lower royalty revenue due to ongoing patent disputes.

Footprint gains with large-scale projects in early stages tend to have a dilutive impact on gross margins, Chief Executive Borje Ekholm said in a statement.

Apart from supply chain disruptions due to the Russia-Ukraine war and chip shortages, the company has been facing investigations over bribery in Iraq and investor ire over improper disclosure.

The company is being investigated by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission $(SEC.UK)$ over its past conduct in Iraq. It had said it was engaging with both agencies and the outcome could not be assessed yet.

($1 = 11.2155 Swedish crowns)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

10

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2276454390?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-10-20 13:06","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2276454390","market":"us","top_or_hot":-1,"title":"Ericsson Earnings Miss Estimates As Costs Dent Margins","media":"Reuters","content":"<html><head></head><body><p>Swedish telecom equipment maker <a href=\"https://laohu8.com/S/ERIC\">Ericsson</a> on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and logistics costs.</p><p>The company&#39;s quarterly adjusted operating earnings fell to 7.1 billion Swedish crowns ($633.05 million) from 8.8 billion crowns a year earlier, missing analysts&#39; mean forecast of 8.73 billion, according to Refinitiv data.</p><p>Ericsson&#39;s quarterly revenue, however, rose to 68 billion crowns from 56.3 billion a year earlier, beating analysts&#39; average estimate of 66.25 billion.</p><p>Gross margin fell to 41.4% from 44.0% as it was also hit by lower royalty revenue due to ongoing patent disputes.</p><p>Footprint gains with large-scale projects in early stages tend to have a dilutive impact on gross margins, Chief Executive Borje Ekholm said in a statement.</p><p>Apart from supply chain disruptions due to the Russia-Ukraine war and chip shortages, the company has been facing investigations over bribery in Iraq and investor ire over improper disclosure.</p><p>The company is being investigated by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission <a href=\"https://laohu8.com/S/SEC.UK\">$(SEC.UK)$</a> over its past conduct in Iraq. It had said it was engaging with both agencies and the outcome could not be assessed yet.</p><p>($1 = 11.2155 Swedish crowns)</p></body></html>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ericsson Earnings Miss Estimates As Costs Dent Margins</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEricsson Earnings Miss Estimates As Costs Dent Margins\n</h2>\n\n<h4 class=\"meta\">\n\n2022-10-20 13:06 北京时间&nbsp;&nbsp;&nbsp;<strong>Reuters</strong>\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Swedish telecom equipment maker Ericsson on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"","article_id":"2276454390","we_media_id":"1036604489","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2276454390","pubTimestamp":1666242402,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Reuters","introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"summary":"Swedish telecom equipment maker Ericsson on Thursday reported third-quarter core earnings that misse","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"爱立信收益低于预期，成本降低利润率","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{},"content_text":"Swedish telecom equipment maker Ericsson on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and logistics costs.The company's quarterly adjusted operating earnings fell to 7.1 billion Swedish crowns ($633.05 million) from 8.8 billion crowns a year earlier, missing analysts' mean forecast of 8.73 billion, according to Refinitiv data.Ericsson's quarterly revenue, however, rose to 68 billion crowns from 56.3 billion a year earlier, beating analysts' average estimate of 66.25 billion.Gross margin fell to 41.4% from 44.0% as it was also hit by lower royalty revenue due to ongoing patent disputes.Footprint gains with large-scale projects in early stages tend to have a dilutive impact on gross margins, Chief Executive Borje Ekholm said in a statement.Apart from supply chain disruptions due to the Russia-Ukraine war and chip shortages, the company has been facing investigations over bribery in Iraq and investor ire over improper disclosure.The company is being investigated by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission $(SEC.UK)$ over its past conduct in Iraq. It had said it was engaging with both agencies and the outcome could not be assessed yet.($1 = 11.2155 Swedish crowns)","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":10,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2276454390"}