The Strategist

Ericsson's adjusted operating profit falls in Q4

01/20/2023 - 10:27

Ericsson of Sweden's underlying earnings for the fourth quarter were below estimates, which is happening for the third consecutive quarter. 5G equipment sales are declining in high-margin markets like the United States.

The adjusted operating profit for the quarter at Ericsson, excluding restructuring costs, decreased from SEK 12.8 billion to SEK 9.3 billion ($902 million). According to Refinitiv, the average underlying earnings expectation for analysts was SEK 11.22 billion.

In contrast to expectations of 84.2 billion kronor, net sales increased by 21% to 86 billion kronor.

In addition to the 6 billion kroner in revenue from the resolution of its patent fight with Apple last month, Ericsson also incurred expenses of 4 billion kroner, including a contingency for a potential fine from American regulators and the sale of assets.

According to Ericsson, the next 18 to 24 months should see a considerable increase in patent revenue.



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