Slowing 5G Spend And Strategic Missteps Have Ericsson Shares On The Mat

Stephen Simpson profile picture
Stephen Simpson


  • Ericsson once again missed quarterly expectations, with slightly better revenue offset by weaker than expected margins.
  • The outlook for the core Networks business is weaker, with management expecting a meaningful decline in North American carrier spending, while growth in India will come with weaker margins.
  • Enterprise looks like a credible long-term opportunity, with 5G enabling smart factory, smart city, and smart transportation initiatives, but execution risk is still very real.
  • Ericsson's valuation reflects an exceptional amount of pessimism, but management's ability to execute outside of Networks is still an open debate.

Cell Phone Antenna / Base Station (BTS) Tower

wickedberlin/iStock via Getty Images

It would seem as though both bulls and bears can agree on one thing were Swedish telecom equipment manufacturer Ericsson (NASDAQ:ERIC) is concerned – the situation isn’t as bad as it looks. The problem is that

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (4)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.