Ericsson (Nasdaq: ERIC ) reported earnings on July 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Ericsson missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
Ericsson notched revenue of $8.21 billion. The 23 analysts polled by S&P Capital IQ expected to see sales of $8.36 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The eight earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. Non-GAAP EPS of $0.13 for Q2 were 18% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.07 for Q2 were 40% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.4%, 30 basis points worse than the prior-year quarter. Operating margin was 4.5%, 200 basis points worse than the prior-year quarter. Net margin was 2.7%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.47 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $35.34 billion. The average EPS estimate is $0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 374 rating the stock outperform, and 32 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Ericsson a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ericsson is outperform, with an average price target of $12.93.
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