X
<

What Can We Expect from Ericsson in 3Q17?

PART:
1 2 3 4 5 6 7
Part 2
What Can We Expect from Ericsson in 3Q17? PART 2 OF 7

When Might Ericsson Return to Revenue and Profitability Growth?

Revenue expected to fall 7.5% in fiscal 2017

Analysts expect Ericsson’s (ERIC) revenue to fall 7.5% YoY (year-over-year) to $24.1 billion in fiscal 2017 compared to $26.1 billion in fiscal 2016. Revenue is also expected to fall in fiscal 2018 by 4.1% YoY to $23.1 billion. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) is estimated to fall 64.0% YoY in 2017 to $0.11.

Analysts expect Ericsson’s net margin to be -3.9% with an operating margin of -0.50% in 2017. It had a net margin of 0.77% with an operating margin of 7.4% in 2016. Profit margins are expected to rise in 2018 and 2019 despite a YoY fall in revenue. While analysts expect Ericsson’s revenue to fall 3.5% in 2018, its net margin is expected to rise to 2.2% with an operating margin of 6.0%.

When Might Ericsson Return to Revenue and Profitability Growth?

Interested in ERIC? Don't miss the next report.

Receive e-mail alerts for new research on ERIC

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Ericsson’s operating margin and net margin are expected to rise to 7.8% and 4.5%, respectively, in 2019 despite a fall in revenue of 0.50% YoY.

Operating margin was 11.4% in 2015

In 2015, Ericsson’s operating margin was 11.4%, and its net margin was 5.5%, which is the highest profit margins since 2011. Revenue then fell almost 10.0% YoY in 2016 due to lower demand from developed markets and a difficult macro environment, which negatively impacted its profit margins.

This year, Ericsson is expected to post a net loss despite its efforts to cut costs.

X

Please select a profession that best describes you: