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A Look at ERIC’s Revenue and Earnings Growth in 2019 and Beyond

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Sales expected to fall 1.6% in 2019

While analysts expect Ericsson’s (ERIC) revenue to rise 4.3% YoY (year-over-year) to $5.3 billion in the first quarter of 2019, they expect its sales to fall 0.5% to $5.71 billion in the second quarter. Analysts also expect the company’s revenue to fall 1.6% to $23.87 billion in 2019, down from $24.25 billion in 2018.

Analysts, however, expect ERIC’s sales to rise 1.8% YoY to $24.3 billion in 2019. The sales of peer companies Nokia (NOK) and Cisco (CSCO) are expected to see a fall of 2.1% and a rise of 4.8%, respectively, in their current years.

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Robust earnings growth expected for Ericsson

Though Ericsson’s revenues are expected to rise in the low single digits by percentage in 2020 and 2021, the company’s earnings are expected to grow at a much faster pace. Analysts expect Ericsson’s non-generally accepted accounting principles EPS to rise 400% to $0.05 in the first quarter and an astounding 281% to $0.42 in 2019.

Its EPS are further expected to rise 21.4% to $0.51 in 2020. In fact, the company’s EPS are expected to rise at a CAGR (compound annual growth rate) of 243% in the next five years compared to its YoY earnings fall of 35% in the last five years.

In comparison, Nokia’s and Cisco’s EPS are expected to rise at CAGRs of 22% and 9.9%, respectively, over the next five years.

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