Ericsson Misses on Revenues but Beats on EPS
Ericsson (NAS: ERIC) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Ericsson missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Margins grew across the board.
Ericsson booked revenue of $7.69 billion. The 26 analysts polled by S&P Capital IQ anticipated revenue of $7.96 billion on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $8.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.42 for Q1 were 110% higher than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 100.0%, 6,120 basis points better than the prior-year quarter. Operating margin was 17.8%, 520 basis points better than the prior-year quarter. Net margin was 17.3%, 960 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.38 billion. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $34.21 billion. The average EPS estimate is $0.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 372 rating the stock outperform, and 30 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Ericsson a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ericsson is outperform, with an average price target of $11.17.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.