Telefonaktiebolaget L M Ericsson Class B
ERIC B: XSTO (SWE)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| SEK 17.00 | Rqx | Rfrrhctdz |
Ericsson Earnings: Revenue Remains Terrible but There Are Some Signs of Improvement
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Ericsson's steep revenue declines continued during the first quarter, which we attribute to the ongoing pullback in mobile carrier spending globally rather than company-specific challenges. However, margins were generally good, cash flow was strong, and North America appears to be stabilizing. We don't believe the global market for mobile network equipment will continue shrinking, which makes Ericsson's stock much too beaten up in our view, as we are maintaining our SEK 92 fair value estimate.