Ericsson Investors Concerned over Component Costs

Dow Jones07-15

0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor ($8.06 billion), from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

July 15, 2026 03:50 ET (07:50 GMT)

At the request of the copyright holder, you need to log in to view this content

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

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2651458948?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-15 15:50","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2651458948","market":"sh","top_or_hot":-1,"title":"Ericsson Investors Concerned over Component Costs","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor ($8.06 billion), from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor. (dominic.chopping@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 15, 2026 03:50 ET (07:50 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","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 Investors Concerned over Component Costs</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 Investors Concerned over Component Costs\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-07-15 15:50</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor ($8.06 billion), from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor. (dominic.chopping@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 15, 2026 03:50 ET (07:50 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4554","symbol_name":"元宇宙及AR概念","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2651458948","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2651458948","pubTimestamp":1784101800,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor , from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor.  Dow Jones NewswiresJuly 15, 2026 03:50 ET Copyright  2026 Dow Jones & Company, Inc.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4554":"元宇宙及AR概念","BK4591":"室温超导概念","BK4020":"通信设备","ISBC":"投资者银行","ERIC":"爱立信","BK4211":"区域性银行","BK4515":"5G概念"},"translate_title":"爱立信投资者担心零部件成本","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISBC":1.5,"ERIC":1.5},"content_text":"0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor ($8.06 billion), from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor. (dominic.chopping@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 15, 2026 03:50 ET (07:50 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"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,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.46.0","shortVersion":"4.46.0","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/2651458948","isCrawlerRequest":true}