Q3 2024 Telefonaktiebolaget LM Ericsson Earnings Call Transcript
Key Points
- Telefonaktiebolaget L M Ericsson (ERIC) reported a strong gross margin of 46.3% in Q3, up from 39.2% last year, driven by a favorable market mix and cost optimization efforts.
- The company saw a significant increase in EBITA to SEK7.8 billion from SEK4.7 billion last year, indicating improved profitability.
- Free cash flow was robust at SEK12.9 billion, reflecting strong operational performance and efficient inventory and supply chain management.
- North America sales grew by 55% year over year, supported by strong deliveries related to the AT&T contract and selective network investments by other large customers.
- Telefonaktiebolaget L M Ericsson (ERIC) is making strategic moves in enterprise business, including a joint venture with global CSPs to aggregate and sell network APIs, which is expected to open new revenue streams.
- Organic sales declined by 1% in Q3, indicating a challenging market environment.
- Sales in Southeast Asia, Oceania, and India decreased by 43% due to normalization after a rapid 5G rollout in India last year.
- The enterprise segment faced near-term pressure with a sales decline of 3%, impacted by a focus on more profitable markets and products.
- The global RAN market remains challenged, with a slowdown in customer investments in Northeast Asia and the Middle East and Africa.
- Telefonaktiebolaget L M Ericsson (ERIC) anticipates further pressure in the enterprise segment in the near term as it focuses on profitable segments.
Hello, everyone, and welcome to the presentation of Ericsson's third-quarter 2024 results. With me here in the studio today are Borje Ekholm, President and CEO; and our CFO, Lars Sandström. As usual, we'll have a short presentation followed by Q&A. (Event Instructions)
Details can be found in today's earning's release and on the Investor Relations website. Please be advised that today's call is being recorded and that today's presentation may include forward-looking statements. These statements are based on our current expectations and certain planning assumptions, which are subject to risks and uncertainties. The actual results may differ materially due to factors mentioned in today's press release and discussed in this conference call. We encourage you to read about these risks and uncertainties in our earnings report as well as in our annual report.
I'll now hand the call over to Borje and Lars for their introductory comments.
¶
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
