Ericsson (OM: ERIC B) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Ericsson missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Ericsson reported revenue of $7.96 billion. The 23 analysts polled by S&P Capital IQ anticipated revenue of $8.10 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 $0.15. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. Non-GAAP EPS of $0.15 for Q1 were 67% higher than the prior-year quarter's $0.09 per share. GAAP EPS of $0.06 for Q1 were 86% lower than the prior-year quarter's $0.42 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 32.0%, 230 basis points worse than the prior-year quarter. Operating margin was 4.1%, 310 basis points worse than the prior-year quarter. Net margin was 2.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.50 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $35.38 billion. The average EPS estimate is $0.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 375 rating the stock outperform, and 33 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Ericsson a green thumbs-up, and eight 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 $12.84.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Ericsson fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Ericsson to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.