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 met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Ericsson booked revenue of $8.00 billion. The 25 analysts polled by S&P Capital IQ anticipated sales of $7.93 billion on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $8.69 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.05 for Q2 were 67% lower than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.7%, 560 basis points worse than the prior-year quarter. Operating margin was 6.5%, 580 basis points worse than the prior-year quarter. Net margin was 2.0%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.05 billion. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $33.30 billion. The average EPS estimate is $0.58.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ericsson is outperform, with an average price target of $10.65.

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