Ericsson disappointed the market today. Despite a strong Q4 performance, the profitability outlook has been lowered by the investment Ericsson is undertaking in order to grow both its product offer and client base. We will be downgrading our gross margin assumption for 2020 but we maintain our recommendation as in our view Ericsson is well placed on the market to acquire significant market share, which will then pay off in term of profitability.
24 Jan 2020
Q4: strong Q4, shadowed by potential profitability growth in 2020
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Q4: strong Q4, shadowed by potential profitability growth in 2020
Telefonaktiebolaget LM Ericsson Class B (ERIBR:HEL) | 0 0 0.2% | Mkt Cap: 179,329m
- Published:
24 Jan 2020 -
Author:
Hugo Paternoster -
Pages:
3
Ericsson disappointed the market today. Despite a strong Q4 performance, the profitability outlook has been lowered by the investment Ericsson is undertaking in order to grow both its product offer and client base. We will be downgrading our gross margin assumption for 2020 but we maintain our recommendation as in our view Ericsson is well placed on the market to acquire significant market share, which will then pay off in term of profitability.