Saturday01 April 2023

Ericsson above the expectations

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Thanks to the positive sales results related to telecommunications equipment and their related services, Ericsson has published results which are better than expected for the Q4 of 2012. The company’s CEO said that “If you asked me to grade these results, I would say that they are a B“ so let’s take a look at them.

The company has operated with €7.8 billion in transactions, an increase of 5% from a year earlier. Earnings before interest, taxes and costs associated with the joint company, rose from 474.6 last year to 555.7 million euros. That's better than analysts’ expectations, which had predicted earnings of 497.8 million euros. But in the end, the company is still showing losses, mostly due to the cost of 932.3 million euros related to the joint venture ST-Ericsson.
For the whole last year, Ericsson has reported traffic of 26.5 billion euros and profit of 687.5 million euros. Following the publication of these results the value of the company's stock rose 8.9%; the highest since August 2011.

[Ed – Ericsson still has a way to go to start showing positive results after the failure of more than one joint venture including one with Sony. It is important that they start to show movement though as any extended period of loss will make a comeback exceptionally difficult (just ask AMD).  It is possible that these results will help maintain investor and market confidence until Ericsson can start to get past their failed ventures…]

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Last modified on Sunday, 03 February 2013 18:54

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