- ericsson Eric reported revenue growth of in the fourth quarter of fiscal 22 21% yoy to SEK 86 billion.
- Group organic sales were up 1% Y/Y driven by IPR Networks.
- It reported EPS of SEK 1.82 versus SEK 3.02 last year.
- Adjusted gross margin shrank 200 basis points to 41.5% due to changes in business mix at Networks and exit and portfolio fees Customizations in cloud software and services.
- Also read: Why Ericsson Stock Is Gaining Today
- Adjusted EBIT margin declined 790 basis points to 9.4% as adjusted EBIT fell 34% year over year after some of its key 5G network customers pulled spending amid an uncertain economic environment, Bloomberg said reports.
- Underlying EBITA fell 27% year-on-year to SEK 9.3 billion.
- Ericsson expects Networks margins to fall in H1 2023 due to changing business mix.
- In the first quarter, Ericsson expects EBITA to be slightly below last year’s EBITA, with improvements throughout the year.
- CEO Börje Ekholm said: “As we said during our Capital Markets Day, there are near-term uncertainties, but we are still in the early stages of global 5G rollout and widespread enterprise digitization.”
- Price promotion: ERIC shares closed down 1.66% at $5.93 on Thursday.
- Photo via Wikimedia Commons
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