Yesterday, 6:37 PM
- A deal extension with Sprint (S +2.4%) is a "positive" for Ericsson (ERIC +0.4%), says Raymond James, but it's difficult to say just how positive.
- An extension of the companies' 2009 deal means that Sprint will take on some Ericsson employees as Ericsson provides "some multi-vendor services" on Sprint's big network expansion.
- Ericsson lost out on its infrastructure position in the deal, giving way to Samsung and Alcatel-Lucent, but held on to managed services, Raymond James analyst Simon Leopold notes.
- "In 2009, Sprint had fewer subscribers at 48M (Sprint 32M, Nextel 12M, Wholesale 4M), vs. 59M now (Sprint 45M, Wholesale 14M), which makes us hopeful that the value is meaningful, but we suspect the scope has changed, making estimation difficult," he says.
- Managed Service revenue has grown at Ericsson from 24.5B Swedish kronor (about $2.9B) in 2011 to 31.8B kronor in 2015.
- Leopold has an Underperform rating on the shares.
Wed, Jul. 27, 5:56 PM
- Ericsson (ERIC +0.4%) and Sprint (S -7.4%) renewed parts of a managed services deal that will include Sprint taking on some Ericsson employees.
- Terms are undisclosed, but that means Ericsson will provide "some multi-vendor services" as part of work on Sprint's network project.
- The deal is an extension of an original network outsourcing arrangement made in 2009, when 6,000 employees were transferred from Sprint to Ericsson as the latter took over management of the CDMA, iDEN and wireline networks.
- Capex spending and planning has been on the decline at Sprint. In its most recent earnings report, the carrier reduced guidance for spending to about $3B for the full year.
Mon, Jul. 25, 10:33 AM
- Ousted Ericsson (ERIC +1.9%) CEO Hans Vestberg was instrumental in transforming the company to a services footing, but "that strategy seems to have run its course," notes J.P. Morgan.
- Vestberg had lost favor with key shareholders at the company, and stepped down earlier today after a string of disappointments.
- The next CEO has to work on gross profit, says JPM's Sandeep Deshpande: "Most important is improving Ericsson’s gross margin which is well below that of its peers."
- The company doesn't break out its lower-margin services business, Desphande notes, "but the substantially lower overall gross margin of the company (excluding IPR payments) in comparison to the gross margin at peers Nokia and, prior to take out Alcatel-Lucent, is a major concern for investors, given Ericsson’s strong wireless broadband market position."
Mon, Jul. 25, 2:46 AM
- Ericsson's (NASDAQ:ERIC) Board of Directors feels "the time is right for a new leader," announcing the departure of Chief Executive Hans Vestberg amid shareholder pressure to replace him.
- Chief Financial Officer Jan Frykhammar will assume the CEO position until a replacement has been found. As customary, the search process will comprise both internal and external candidates.
- ERIC +4% premarket
- Previously: Report: Ericsson shareholders want new CEO; shares +2.5% (Jul. 20 2016)
Wed, Jul. 20, 10:31 AM
- Ericsson (NASDAQ:ERIC) is up 2.5% in U.S. trading, rebounding from a post-earnings slip of 6.1% yesterday, amid reports that the company's key shareholders want new leadership at the top.
- Investor, the holding company of the Wallenberg dynasty, and Industrivarden -- together the two main shareholders -- agree that CEO Hans Vestberg needs to go, according to Dagens Industri, but the trick is finding someone who's willing and able to step in.
- That means such a change might not happen until the end of the calendar year, when cost-cutting measures have already been launched, DI says.
- Anders Runevad (CEO of Vestas Wind) is a candidate, the daily says, and it has heard from a source that there's no internal candidate for the job.
Tue, Jul. 19, 9:14 AM
Tue, Jul. 19, 5:18 AM
Tue, Jul. 19, 5:04 AM
- Novartis (NYSE:NVS) -1% premarket after lowering its full year earnings guidance on plans to increase spending on its drug Entresto.
- Ericsson (NASDAQ:ERIC) reversed earlier losses as investors digested the firm's plans to cut costs by twice as much as previously thought.
- Rio Tinto (NYSE:RIO) -5% premarket after reporting that Q2 iron-ore production rose a weaker-than-expected 8%.
Mon, Jul. 18, 5:30 PM
Mon, Jul. 18, 6:55 AM
- Ericsson (NASDAQ:ERIC) is defending its accounting practices after Svenska Dagbladet questioned the way it booked future sales which had yet to be invoiced.
- The company denied any wrongdoing and said in an emailed statement that "the claim that Ericsson in an inaccurate way has reported revenues in the income statement is not true."
Fri, Jun. 24, 4:24 AM
- Tremors from Brazil's biggest bankruptcy filing are extending far beyond the recession-hit country's borders.
- Oi (NYSE:OIBR) is seeking creditor protection on over $150M of accounts payable to international providers from Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC) to IBM and Alcatel-Lucent.
- The fixed-line carrier also owes about $1B to foreign development banks in China, Finland, Canada and Germany.
Tue, Jun. 21, 12:34 PM
- Even though "top-line trends" will continue to be tough this year thanks to weaker spending by telco customers, a battered stock price combined with higher profits thanks to cost-cutting makes for an upgrade to Neutral from Sell, says analyst Alexander Duval.
- His 2017 EBITDA estimate is now just 1% lower than consensus, suggesting less downside catalysts.
- As for this year, Duval sees an 8% decline in revenue vs. 2% consensus, but a story about major job cuts gives him hope of progress on costs by 2017.
- His price target of $8.50 compares to $7.90 previously, and the current price of $7.94.
- ERIC +1.5%
Fri, Jun. 17, 2:35 AM
- Ericsson (NASDAQ:ERIC) is being investigated by the DOJ and SEC over possible corruption related to its business in China, Svenska Dagbladet reported late Thursday.
- A company spokesperson declined to comment on the report, but said Ericsson was cooperating with U.S. authorities regarding a request for information it had received in March 2013.
Tue, Jun. 14, 5:32 AM
- Ericsson (NASDAQ:ERIC) plans to lay off between 3,000 and 4,000 staff this summer and is considering large, additional cost cuts (and further layoffs) due to slowing markets, Svenska Dagbladet reports.
- With most of the latest generation of networks already built, especially in developed regions, Ericsson has been struggling to find growth for that part of its business.
Fri, May 20, 5:39 PM
Thu, Apr. 21, 9:41 AM
- Ericsson (NASDAQ:ERIC) has tumbled 12.4% out of the open, after an earnings miss accompanied by a sweeping reorg.
- Three senior VPs are out as the company resets into five business units and a dedicated customer service division.
- Net profit was up 49%, while revenues dropped 2% (down 1% in constant currency). Gross margin fell to 33.3% from a year-ago 35.4%.
- Growth in North America, mainland China and southeast Asia was offset by weak development in Europe and some emerging markets, the company said.
- Revenue by segment: Networks, SEK25.8B (down 2%); Global Services, SEK23B (down 4%); Support Solutions, SEK3.4B (up 10%).
- Press Release
LM Ericsson Telefon AB provides telecommunications equipment and related services to mobile and fixed network operators globally. The company operates through three segments: Networks, Global Services, Support Solutions and Modems. The Networks segment delivers products and solutions for mobile... More
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