Ericsson (ERIC), Chunghwa to Power Orsted Wind Farms' Network
Ericsson (ERIC) extends its working relationship with Chunghwa Telecom to deploy its 4G LTE private networks at Orsted's Greater Changhua wind farms for a seamless communications infrastructure.
Zacks · 1d ago
There Are Good Reason to Feel Bullish About Ericsson Stock
If investors are seeking the perfect investment, keep on looking. But if you’re interested in a well-positioned value stock wrapped up in a growth narrative, LM Ericsson (NASDAQ:ERIC) should be on your watchlist. Moreover and right now, buying shares today is a smart rotation trade of sorts based on what’s happening off and on the price chart of Ericsson stock. Source: rafapress / Not all stocks are created equal. Right now many tech investors are finding that out the hard way. After massive gains in 2020 a rotation into Covid-19 “stay away” stocks Delta (NYSE:DAL), Carnival (NYSE:CCL) and others are finding some love from Wall Street. But the improvement is occurring at the expense of some of the pandemic’s largest beneficiaries such as Zoom (NASDAQ:ZM) and Amazon (NASDAQ:AMZN). They’re among leading stocks this month which have dropped beneath the market’s broad-based corrective lows established in October.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Of course, it’s not entirely without good reason either. A one-two dose of powerful vaccine news from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) the past two Mondays and now a third injection from AstraZeneca (NYSE:AZN) has Wall Street cheering the end is near, in a good sort of way. Yet while some large-cap tech stocks have suffered, Swedish telecom play Ericsson is demonstrating immunity from today’s broader market narrative. It’s tracking a separate theme that should continue to pay shareholders long after Covid-19 is in the rearview mirror. 10 Best Stocks to Buy for Investors Under 30 As more than a couple of my colleagues have explained in recent days, Ericsson is all about owning a piece of 5G. And that growth is being served up quite nicely for today’s shareholders. Among those pounding the table, Louis Navellier, Chris Lau, and Mark Hake are all fans of Ericsson. And it’s hard not to be positive on shares. From consistently inking commercial 5G contracts in the face of the pandemic, expansion into 5G-enabled services for enterprise customers and owning patents which print money for Ericsson whenever a new 5G smartphone is sold, the company has done an admirable job of pivoting away from its mobile phone roots spawned during the dot-com era. And unlike many other tech names today, Ericsson is inexpensive. Bottom line, shares of Ericsson fetch just 16x the company’s forward 2021 earnings. Not only is that attractive compared to many tech stocks, but it’s also a historical discount to Ericsson’s typical 24x multiple. ERIC is in position to provide certain investors a bit more relief as shares sport a modest dividend of 1.35% and free cash flow yield approaching 5%. And right now, another November “rotation” is happening on Ericsson’s stock chart, which reveals price action that investors should be upbeat about. Ericsson Stock Monthly Price Chart Click to EnlargeSource: Charts by TradingView Is Ericsson the perfect investment? Not that there is such a thing. But as Mark Hake thoughtfully notes, geopolitical retaliation by Beijing following Washington’s actions against China’s telecom manufacturers does make shares vulnerable and could be behind why Ericsson is so reasonably attractive. My view on Ericsson stock is more pragmatic. Despite the potential business threats, a rotation into shares of Ericsson have allowed the stock to hit new relative highs in November. That’s no easy feat given the broader reallocation by Wall Street out of large-cap technology stocks. Then again, Ericsson hasn’t exactly kept up with the Jones, or more aptly the likes of the Dow Jones Industrials in decades, let alone in 2020. Technically and as the illustrated monthly chart shows, shares of ERIC are clearing a handle consolidation. The bullish price action marks a second attempt at a pattern breakout following a test of former key resistance dating back to 2011 and high of today’s slightly unorthodox ‘W’ or double bottom formation. One flaw that does stand out on the price chart which further confirms Ericsson isn’t the perfect investment, is the stock’s bearish overbought crossover vis-à-vis the stochastics indicator. Still, if investors can appreciatively look past, but not completely turn a blind eye to those issues, an intermediate term, married put hedged stock strategy is a solid way to play growth at a discount with less regrets, regardless of future outcomes. On the date of publication, Chris Tyler did not hold, directly or indirectly, positions in any of the securities mentioned in this article. Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post There Are Good Reason to Feel Bullish About Ericsson Stock appeared first on InvestorPlace.
InvestorPlace · 2d ago
Invest in the 5G Boom by Buying Ericsson Stock
Investors building a 5G portfolio should look no further than with Ericsson (NYSE:ERIC). The company’s profitability rose in all segments and at levels not seen since 2006. Fortunately, Covid-19 did not harm its business. Source: rafapress / By holding the slow-moving, low volatility Ericsson stock, patient investors will earn a decent long-term return. Ericsson Stock Near Highs Markets tried to pull Ericsson below the $11 range in Sept. The bearishness ended after the company posted results on Oct. 21. Sales rose 7% compared to last year, thanks primarily to 5G sales in Mainland China. Whereas other mega-cap network suppliers failed to crack this market, Ericsson is thriving. Its gross margin rose to 43.1%, up from 37.7% Y/Y.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Cyclical Stocks Still Hoping for Another Stimulus Round Sales from the Networks division increased by 6% Y/Y. Excluding restructuring charges, the operating margin topped 22.7%. On its conference call, CEO Ekholm said that the company expects momentum from its North American market continuing into 2021. The gross margin will also improve as it adjusts to declining markets such as in Europe. Apple’s (NASDAQ:AAPL) launch of the 5G iPhone is a positive catalyst in the consumer space. Ericsson’s CEO thinks that strong iPhone sales will drive demand for its network equipment. Investors could buy shares of Ericsson and pay a price-to-earnings of no more than 25 times. Its forward P/E is in the mid-teens multiple. By comparison, Apple stock trades at a P/E approaching 40 times and a forward P/E of around 30 times. Fair Value Readers may build a 5-year discounted cash flow EBITDA Exit model. The table below is a set of metrics that may best represent Ericsson’s fair value: Metrics Range Conclusion Discount Rate 8.0% – 7.0% 7.50% Terminal EBITDA Multiple 9.0x – 11.0x 10.0x Fair Value $13.71 – $16.26 $14.97 Model courtesy of finbox The company’s 5G portfolio is ahead of the competition. Investors are overlooking its strength, which suggests the stock is worth more than the fair value calculated above. For example, independent firms looked at its Intellectual Property Rights (IPR). They believe it will be a key contributor to its earnings. The patents also add tremendous value to Ericsson’s research and development. To monetize its IPR, Ericsson will flex its strength by leveraging them in discussions with those who need it. Positive Catalysts The continued market share growth is a positive catalyst that will support its revenue growth. And even though its customers like to maintain vendor diversity, Ericsson offers lower operating expenses and ultimately lower total cost of ownership for its solutions. Embracing Open RAN (O-RAN) positions the company for future software revenue growth. CEO Ekholm does not expect O-RAN will contribute to the bottom line in the 2021-22 timeframe. Still, it will have a positive impact on its business model. And when the technology ultimately shifts, as it always does in the telecom industry, Ericsson will maximize the O-RAN opportunity. Increasing R&D investments will accelerate its growing portfolio of products. Conversely, its legacy portfolio is falling faster than the company expected. Overall, short-term performance may suffer as sales volume comes in lower than expected. In the next few quarters, software sales will have a bigger positive impact on results. This suggests that Ericsson’s stock will continue its uptrend that began in March. Your Takeaway Ericsson managed the heavy competition in the 5G space effectively. It is benefiting from the healthy competition is thriving in a very healthy ecosystem. At its modest valuation on a P/E basis, the stock is attractive for value investors seeking a 5G investment. Continue holding this stock and adding aggressively to the position if the stock happens to stumble again. The entry point rarely comes and when it does, it does not stay on sale for very long. Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.  More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Invest in the 5G Boom by Buying Ericsson Stock appeared first on InvestorPlace.
InvestorPlace · 11/20 18:09
Correction of date for Ericsson's fourth quarter report 2020
Ericsson's (NASDAQ: ERIC) financial report for the fourth quarter 2020, will be issued on January 29, 2021. By mistake an incorrect date is stated in the financial report for the third quarter of 2020, published on October 21. The error occurs on page 12, last sentence, "Date for next report: January 26, 2021".
PR Newswire · 11/20 08:19
S&P upgrades Sweden's Ericsson to 'BBB-' with stable outlook
S&P said on Wednesday it has upgraded its credit rating on telecom gear maker Ericsson to 'BBB-' with a stable outlook following a solid improvement of free cash flow. S&P, whose previous rating on the Swedish firm was BB+, said the stable outlook reflected expectations that Ericsson would post low-single-digit revenue growth, and maintain its adjusted EBITDA margin at 12% to 14%. "We expect Ericsson's annual reported free operating cash flow after lease payments will increase to about 10 billion Swedish crowns in 2020, compared with about 4 billion annually from 2016-2018," S&P said in a statement.
Reuters · 11/18 16:39
Ericsson (ERIC) Sees Global 5G Consumer Market at $31T by 2030
Ericsson (ERIC), in collaboration with Omdia, undertakes a study to find out the 5G consumer revenue opportunity for communications service providers until 2030.
Zacks · 11/18 14:32
Ericsson forecasts $31T 5G consumer revenue by 2030
Ericsson's (ERIC) ConsumerLab reports that 5G could drive up to $31T in cumulative consumer revenue in the ICT industry by 2030The report estimates that communications service providers could earn $3.7T of
Seekingalpha · 11/17 10:34
Ericsson estimates USD 31 trillion 5G consumer market by 2030
5G could drive up to USD 31 trillion in cumulative consumer revenue in the ICT industry by 2030
PR Newswire · 11/17 09:35
Nokia Stock Continues to Struggle to Rise Above $4
InvestorPlace · 11/13 17:05
Nokia Stock Still Hobbled by 5G Ineptitude
Some stories — you know, crazy pandemics, crazier elections, craziest wardrobe fails — make so many headlines these days that they’ve shoved otherwise major developments off to the side. One of those, 5G technology, promises to change mobile communications like nothing else in generations. Vying for a nice slice of the pie is Nokia (NYSE:NOK), much to the delight of those who own Nokia stock. Click to EnlargeSource: RistoH / The trouble is that with this 5G bakeoff, Nokia will at best win ugly and at worst lose uglier, snatching defeat from the jaws of victory. Just a few months back, Nokia had a full tummy eating the dust of China’s privately held Huawei Technologies — then the world’s undisputed 5G leader. But when the Commerce Department, citing Chinese espionage concerns, cut off Huawei’s access to advanced computer chips, it created a mobile miracle for Nokia and other players, including its Swedish rival Ericsson (NASDAQ:ERIC). The $21 billion question, then (that’s Nokia’s market capitalization) centers on whether the Finnish company has leveraged or squandered this once-in-a-cellular-lifetime opportunity. Effective Aug. 1, new CEO Pekka Lundmark was given the reigns to make victory possible. How’s he doing so far? And how’s Nokia stock doing given its recently ended quarter?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nokia Stock Sinks Like a Rock The vernacular phrase quants and investment wonks use to describe NOK is “no can do.” If Lundmark’s return to Nokia after two decades away was supposed to inspire the troops, it’s hardly done any wonders for shareholders. Since August, Nokia stock has lopped off a quarter of its value. 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season Granted, much of the slump came off a terrible third quarter that largely predates Lundmark’s arrival. When that earnings report was released Oct. 29, shares of Nokia stock tumbled 13% as the company cut its full-year and margin forecasts. You have to admire Lundmark for putting on a brave face for his first-ever earnings release, given the glum nature of the news. He proclaimed that Nokia would do “whatever it takes” to take the lead in 5G — which is fine, except for a few things. Very big things. Huge things no new CEO can just pretend or pray will go away like a screened spam caller. Three Major Challenges Nokia Can’t Ignore First: If you can’t take the 5G lead or get anywhere close to it when the top dog is effectively cut off at the knees — which would require, in essence, nothing but just showing up — then you’re not going to convince anyone you’ll do “whatever it takes.” Second: Lundmark needs to prove he’s more than just a feel-good story. Sure, he’s returning to the company where he built his career — but hasn’t been around Nokia since the flip-phone era. He honed his CEO chops at Fortum (OTCMKTS:FOJCF), a Finnish energy company, and the analogy that could hold is that a championship football coach might not find his winning skills translate well to synchronized swimming. Finally: Nokia stock has lacked consistency and upward trajectory. While dismal this quarter, Nokia’s net profit for the April-June period shot up 22% to $376 million, this despite the challenges all telecoms have faced due to the novel coronavirus. So are we looking at a company on its way up? Or down? Or up and down? You tell me. If long-run prices were long distance calls, Nokia sends more mixed signals than you’d find in a Manhattan subway during a solar eclipse. Since 2016, prices have waxed or waned 25% or more every single year, and sometimes both (2017). Since January 2019, Nokia stock has been on a frightening nosedive of 37%. Quick Pekka! Call in the analysts! Who say… Anticlimax Over Analyst Anticipation Well, they’re hanging in there. The Wall Street Journal reports that currently, more than half (17 of 32) consider Nokia a buy. But 13 call it a hold and with a consensus share price target of $4.47 per share, we’re not talking champagne in the bathtub. (If we were, we’d kindly ask you not to drop your $700 Nokia 8.3 phone in there.) At present, Nokia stock trades at $3.75 so yes, a 19% lift would be nice. But again, so much depends on this little thing called 5G. I’m going to be honest: Nokia stock stumps me. On paper, it looks like it has all the elements to succeed, including an attractive price-to-earnings ratio of 24-to-1. With Huawei hobbled, 5G dominance is very much in the air and Nokia is still in the early innings of a new game. The new CEO may see paths to victory his predecessors did not. But to my mind and my gut, Nokia’s only consistency over the years has been its inconsistency. Bold moves, including the purchase of Alcatel-Lucent for $16.6 billion in 2015, have fizzled badly. Some people would call this a great time to buy the bottom; I’m more apt to call it flinging dollars into a broad, flat mud puddle. All that to say: While it’s not at all proper to write Nokia’s 5G epitaph, the company hasn’t proven ready to write a new chapter either. Those who hold Nokia stock only know the first line: “Whatever it takes,” right? Now that’s making a statement. Just not a case. On the date of publication, Lou Carlozo did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Nokia Stock Still Hobbled by 5G Ineptitude appeared first on InvestorPlace.
InvestorPlace · 11/13 13:03
Ericsson (ERIC) Ties Up With Telstra for Enterprise Edge Cloud
Ericsson's (ERIC) collaboration with Telstra is expected to improve the service capabilities of the carrier and enable it to significantly scale traditional wireless network to provide 5G services to varied customers.
Zacks · 11/10 14:19
Ericsson aims for long-term margin jump, shares fall
Sweden's Ericsson set some new goals and maintained its 2022 operating margin target after the country's telecoms regulator halted 5G spectrum auctions, driving down the company's shares in early trade on Tuesday. The telecom equipment maker, which holds its capital markets day for investors on Tuesday, has benefited from the global deployment of 5G technology as diplomatic pressure from the United States has eroded market leader Huawei's dominance in regions such as Europe. Late on Monday, Sweden's telecoms regulator halted 5G spectrum auctions after a court suspended parts of its decision that had excluded Chinese telecom equipment maker Huawei from 5G networks.
Reuters · 11/10 10:15
Ericsson aims for margin jump beyond 2022 as it sets new targets
Sweden's Ericsson is targeting an operating margin excluding restructuring charges of between 15% and 18% beyond 2022, it said ahead of Tuesday's capital markets day. "Growth as well as gross margin improvements, driven by software sales and operational leverage, will be the cornerstones in reaching the long-term targets," the telecoms gear maker said in a statement The company, which maintained its 2022 operating margin of 12-14%, excluding charges, boosted its margin forecast from its networks business as telecom operators across the world upgrade to next-generation 5G technology.
Reuters · 11/09 21:47
Ericsson Sees New Long-Term EBITDA Margin Target Of 15%-18%
Reuters · 11/09 21:23
Nokia Stock Remains a Deep-Value Investor’s Delight
Nokia (NYSE:NOK) stock is slowly getting on the nerves of the patient . While the shares of several tech companies are climbing at breakneck speeds, Nokia stock is meandering along at a sluggish pace. After a brief period trading over $5.00, the shares are now changing hands for around $3.50. Source: rafapress / Granted, a few recent developments have not done Nokia stock any favors. Samsung Electronics (OTC:SSNLF) won a $6.65 billion contract to provide wireless communication network equipment to Verizon (NYSE:VZ) in the U.S. for the next five years. Meanwhile, T-Mobile (NASDAQ:TMUS) is using Telefonaktiebolaget LM Ericsson’s (NASDAQ:ERIC) equipment to enable 5G in New York City, with Nokia’s equipment relegated for use on the 4G network. These developments come just as the company was building up some steam. In the last few quarters, Nokia managed to increase its operating cash flow, especially after its dividend was suspended.  Its new CEO, Pekka Lundmark, has drawn praise after his predecessor, Rajeev Suri, received a lot of flack for becoming complacent about Nokia’s 5G position.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The 5G market is fairly large, since the whole world will eventually use it. So even though it may seem like Nokia’s piece of the pie is shrinking, it’s still a big slice. Nokia stock is practically a steal at its current levels. I think investors should take the contrarian view and pour capital into the shares, especially when conservative analysts criticize it. 7 Augmented Reality Stocks To Buy Now For The Future Nokia Remains Powerful Regular readers of my columns will know I’ve been bullish on Nokia stock for quite some time. My view hasn’t changed. In fact, I believe that value investors who don’t buy the shares are forgoing a golden opportunity. It’s important to note that 5G, is a marathon and not a sprint. As I mentioned earlier, the whole world will eventually shift from 4G to 5G. Although the pandemic has stalled the transition’s progress, it has also advanced the change in some ways . In the U.S., it’s believed  that approximately half the workforce is still working remotely. A majority of these workers want to continue doing so after the pandemic is over. Further, consumers are streaming more  content than ever since traditional entertainment outlets like concerts and movie theatres are still not considered safe. Carriers need more and better bandwidth to handle all that extra demand. That brings us back to Nokia. While it’s true that the company lost a lot of contracts recently, there are several contracts it has won as well. Look no further than Europe, Nokia’s home market. Spanish carrier Telefonica (NYSE:TEF) and France’s Orange (NYSE:ORAN) are both buying their equipment from Nokia. Simultaneously, the company is also building an optical network in mainland China for the country’s State Grid Corp. An Important Partnership Much has been said about the Nokia-Verizon partnership. Undoubtedly, Nokia will be hurt by its recent loss to Samsung . But that doesn’t mean that Verizon has completely washed its hands of Nokia. Just recently, Verizon tapped Microsoft (NASDAQ:MSFT) and Nokia to help its clients build private 5G networks. A private 5G network is a local area network that offers restricted, dedicated bandwidth using 5G-capable spectrum. The networks will allow clients to automate their factory floor processes and run data-intensive applications. Overseas, where Verizon doesn’t have a presence, it will use Nokia to build private networks for manufacturing and logistics companies. Nokia Stock Is a Deep-Value Name There are several excellent articles on this website that will help you find genuine bargains that can pay back phenomenally over the long term. I believe Nokia deserves a place on this list, considering the stock trades at a forward price-earnings ratio of 12.30 times,  while Ericsson, its next biggest rival, trades at 18.35 times. I expect Nokia stock to rebound above the $4.00 support line and continue its ascent to $5 per share.  And  Nokia posted positive operating cash flow \in Q3. All signs point to a repeat in Q4. As of the end of Q3, Nokia had $9.25 billion of cash and short-term investments. If it has anywhere close to the same cash when it reports its Q4 results, its dividend will likely be reinstated. So, any way you slice it, there are plenty of reasons to invest in Nokia stock. On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.  Faizan Farooque is a contributing author for and numerous other financial sites. He has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company Daily Picks: Stocks to Buy Ahead of the Election The post Nokia Stock Remains a Deep-Value Investor’s Delight appeared first on InvestorPlace.
InvestorPlace · 11/06 19:10
Zacks Investment Ideas feature highlights: Delta Air Lines, Marriott International, Goldman Sachs, Ericsson and Splunk
Zacks Investment Ideas feature highlights: Delta Air Lines, Marriott International, Goldman Sachs, Ericsson and Splunk
Zacks · 11/04 14:05
Ericsson Eyes 5G Enterprise Market With Cradlepoint Buyout
Ericsson's (ERIC) global presence and long standing associations with leading communications service providers will help accelerate Cradlepoint's expansion.
Zacks · 11/03 15:10
Ericsson closes Cradlepoint acquisition
Ericsson (ERIC) closed its Cradlepoint acquisition as part of its ongoing strategy of capturing market share in the rapidly expanding 5G enterprise space.On closing, a consideration of ~1B was paid using
Seekingalpha · 11/02 13:44
Ericsson: Executing With Ruthless Efficiency
Ericsson has posted strong revenue growth and gross margins for the third quarter.There are COVID-19 challenges being mitigated by higher inventory costs.The company is aggressively investing to benefit from opportunities in enterprise 5G in an evolving competitive landscape.Finances are currently in good shape.Valuations are favorable and the dip constitutes an opportunity to buy.
Seekingalpha · 10/30 05:33
BT signs with Ericsson to replace Huawei in 5G upgrade
BT (BTGOF -4%) has signed a deal to use Ericsson (ERIC -3%) radio access network equipment in its 5G upgrade. That will allow the incumbent British telecom to ditch China's
Seekingalpha · 10/28 18:06
Webull provides a variety of real-time ERIC stock news. You can receive the latest news about Ericsson through multiple platforms. This information may help you make smarter investment decisions.
About ERIC
Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. It develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.