Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ERICSSON LM-B SHS. We currently have 7 research reports from 1 professional analysts.
|10Mar17 07:00||GNW||Ericsson reports restated financials for 2015 and 2016|
|07Mar17 08:00||GNW||Francisco Partners to invest in Ericsson's iconectiv business|
|06Mar17 15:00||GNW||Invitation to conference call on Ericsson's restated financials for 2015 and 2016|
|03Mar17 08:00||GNW||Ericsson publishes Annual Report for 2016|
|02Mar17 09:00||GNW||Vodafone Egypt and Ericsson launch first commercial virtual network function in Middle East|
|01Mar17 09:30||GNW||Ericsson and Tigo partner with GSMA to connect the unconnected in rural Tanzania|
|28Feb17 12:30||GNW||Istanbul Metropolitan Municipality and Ericsson sign smart city partnership|
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ERICSSON LM-B SHS
ERICSSON LM-B SHS
Little enthusiasm for 2017
26 Jan 17
Ericsson reported Q4 revenues of SEK65.2bn, corresponding to a decrease of 11.4% yoy. On a comparable basis (comparable units and currency), however, the decline was 15%. The Middle East, NE Asia and SE Asia were the only areas to show substantial yoy growth (respectively +5%, +8% and +25%), the latter being the only region to display growth on a yearly basis. Networks fell by 13.1% yoy (SEK32.4bn), Global Services by 4.1% (SEK29.4bn) and Support Solutions by 39.5% (SEK3.4bn). The gross margin, excluding restructuring charges, decreased yoy by 720bp to 29.4%, due once again to an unfavourable mix (lower IPR licensing revenues and lower-margin Global Services revenues). In addition, the operating margin was negatively impacted by SEK4.6bn of restructuring charges, an amount caused by an acceleration in the execution of the cost-savings programme, resulting in a 1,540bp decline yoy (-0.4%), while EBIT excluding these charges came in at 6.7% (-930bp). EPS came in at SEK-0.48. The company announced a dividend of SEK1 per share for 2016, compared to SEK3.70 the year before. The company also announced for 2017 an annual run rate of SEK7bn for IPR Licensing (SEK10bn in 2016), restructuring charges of SEK3bn and persistent weak market conditions (-2% to -6% in USD).
No fireman seems to be willing to extinguish the fire
21 Oct 16
Ericsson reported sales of SEK51.1bn, a decrease of 13.7% yoy, which was expected after the profit warning on 12 October. On a comparable basis (comparable units and currency), however, the decline was 7%. Every region but SE Asia displayed a decrease, the sharpest being once again in the Middle East (-25%). Networks fell by 19% yoy (SEK23.3bn), Global Services by 8.3% (SEK24.8bn) and Support Solutions by 10.9% (SEK2.9bn). The gross margin, excluding restructuring charges, decreased yoy by 490bp to 29.4%, due to an unfavourable mix. The operating margin was therefore negatively impacted yoy, losing 790bp at 0.7% (710bp excluding restructuring). The EPS came in at SEK-0.07, corresponding to a 106% decline yoy. As a consequence, the company announced an intensification of its restructuring effort in the short term as a way to offset the sales decline. However, the weak market conditions are expected to remain in the short term.
No growth and more cost-cutting, again
20 Jul 16
Ericsson reported sales of SEK54.1bn, a decrease of 10.8% yoy. On a comparable basis (comparable units and currency), however, the decline was 7%. The company performed well in South America and Oceania, while all other regions displayed a decrease, the sharpest being in the Middle East (-24%). Networks fell by 14.1% yoy (SEK26.8bn), Global Services by 7.2% (SEK24.5bn) and Support Solutions by 8.2% (SEK2.9bn). The gross margin, excluding restructuring charges, decreased yoy by 190bp to 33.2%, due to an unfavourable mix including stronger revenues from lower-margin mobile broadband products compared to software and services-related products. The operating margin was negatively impacted yoy, losing 80bp (340bp excluding restructuring) due to a less IP in the mix. The EPS came in at SEK0.48, corresponding to a 26% decline yoy. As a consequence, the company announced an intensification of its restructuring effort, as it will reduce investments in IP and bring down the annual run rate of opex at SEK53bn in H2 17 vs. SEK63bn in 2014. However, the weak market conditions are expected to remain in H2.
A difficult Q1, with no trigger to be expected in the mid-term
21 Apr 16
Ericsson reported sales of SEK52.2bn, a decrease of 2.4% yoy. On a comparable basis (comparable units and currency), however, the decline is limited to 1%. The company performed well in North America and in South-East Asia, while there was some weakness in most other regions, with a particular drop in India (-24%) and Europe (-17%). The gross margin, excluding restructuring charges, decreased yoy by 240bp to 33.9%, due to an unfavourable mix including stronger hardware sales compared to software and services-related products. The operating margin was favourably impacted by improvements in Networks, reaching 7.9% excluding restructuring charges, up 280bp yoy (6.6% and up 270bp including these charges). However, due to the challenging market conditions and strong headwinds on the top-line perspectives, the company decided a reorgansiation of the business, which will be effective by July 2016, as well as an acceleration of its restructuring programme, which will lead to annual charges of SEK4-5bn vs. SEK3-4bn previously expected.
Relying on cost-cutting to preserve profits in the face of no growth
28 Jan 16
Ericsson reported sales of SEK73.6bn, an increase of 8% yoy. On a comparable basis (comparable units and currency), however, sales were down by 1%. The company performed well in emerging markets such as India, Indonesia and Mexico, while there was some weakness in Russia and Brazil, as in the previous quarter, as well as in the Middle-East. North America and China recovered after a difficult Q3. Despite an IPR agreement with Apple, the gross margin excluding restructuring charges decreased yoy by 100bp at 36.6%, due to an unfavorable mix including stronger hardware sales. The operating margin was favorably impacted by the global cost and efficiency program, which is progressing according to plan (annual net savings of SEK9bn during 2017 relative to 2014). As a consequence, and also due to the lower impact of currency hedge contracts and positive currency effects, the operating margin including restructuring charges came in at 15%, an increase of 570bp yoy, while the increase was 550bp without these charges (16% vs. 10.5%).
A disappointing top-line, offset by the cost-cutting program
23 Oct 15
Ericsson reported sales of SEK59.2bn, an increase of 3% yoy. On a comparable basis (comparable units and currency), however, sales were down by 9% yoy at SEK59.2bn for the third quarter in a row. The areas of weakness were Japan, Russia and Brazil, while on the other hand strong growth was reported in India, South East Asia and Oceania. From a divisional perspective, this dip in revenues was caused by lower sales in Networks, partly offset by sales growth in Professional Services. The gross margin excluding restructuring charges reached 34.5%, a 100bp decrease yoy, caused by an unfavorable mix, namely a bigger share of the Global Services business. The operating margin was favorably impacted by the global cost and efficiency program, which is progressing according to plan. This program is targeting annual net savings of SEK9bn during 2017 relative to 2014, and these savings should represent c.SEK5bn in 2015. As a consequence, and also due to the lower impact of currency hedge contracts, the operating margin including restructuring charges came in at 8.6%, an increase of 190bp yoy, while the increase was 300bp without these charges (10.2% vs. 7.2%).
FY 2016 results confirm further strong delivery
21 Mar 17
Gamma’s FY 2016 revenues, Adjusted EBITDA and Adjusted EPS numbers were a touch ahead of our estimates. We make small upward adjustments to forecasts for all three years of our forecast horizon reflecting that performance. Gamma is capitalising on its position as a nimble player in an attractive marketplace. It made strong progress in 2016 as Voice over IP technology drove uptake of SIP Trunking and Hosted PBX services - both areas where Gamma has strong platforms. In addition, data services reflected Gamma’s investment in its network, channel partner numbers increased again and the indirect business accordingly showed strong revenue growth. The Direct Business also produced good growth and won some significant new contracts. The outlook statement is ’enthusiastic’ about the current year and comments that the Board ‘remains open to suitable M&A opportunities and areas for strategic capital investment’. Overall, an optimistic picture, in our view.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 18-07-2016
18 Jul 16
We look for an in-line set of H1s from Spirent; this follows the Q1 beat. Look for good cash generation, good performance in the Networks division, ‘spotty’ at Wireless division, regionally growth in APAC offset by North America and EMEA customers who are “slow to release budgets”. Spirent should reaffirm the FY outlook – but will flag currency. Whilst the macro backdrop remains fragile, in truth Spirent is a story of getting its house in order and achieving better sales execution. We reiterate that our general investment view (Buy when others are frightened) has captured the zeitgeist and shares have performed well this year. That said there are some neat big picture drivers; 5G remains a prize being dangled as are the opportunities in IoT, high-speed data centre and driverless cars – indeed these should ensure that the shares pick up some Arm-related enthusiasm. Spirent enjoys an attractive valuation (2016E EV/Sales 1.1x, 7.0x EV/EBITDA) relative to sector peers (see table) despite sporting similar operating KPIs (see table). Our target price is 120p. Buy
Panmure Morning Note 13-06-2016
13 Jun 16
More news on 5G means a favourable read-across for the key 5G ‘name’ – Spirent. Today the Dutch Ministry of Economic Affairs has gathered 10 partner organisations together to run a 5G test in North Groningen – tests to be carried out at the end of the year. This is favourable for Spirent as it illustrates that 5G is getting closer and with it raises the possibilities of earlier revenue opportunities for Spirent. Short term is good for share sentiment. We retain our Buy.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Signs of recovery after a difficult 2016
08 Mar 17
As flagged by the recent trading update, group FY 2016 revenue slipped 7% YoY to $90.4m; 43% ($38.5m) of this came from Telecoms, which saw the majority of the decline in revenue as the legacy copper-based equipment sales continue to be wound down. The Bio-Medical division sales slipped just 2% YoY to $51.6m; a poor year from sterilization being compensated for by growth in diagnostics. While gross margins remained firm in both divisions (40% and 25% respectively), both slipped into operating loss; a hefty $2.2m from Telecoms (due to the loss of revenue from contracts) and $0.3m from Bio-Medical; however, the $2.5m operating loss was covered by an exceptional $3m profit on sale of a property. That sale helped cash; $1m received from operations was offset by $6m capex but cash from the sale of assets lifted BATM’s net cash from $21m to a welcome $23m at the year end.