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.
|20Feb17 07:00||GNW||Ericsson partners with iQIYI and China Unicom to improve iQiYi video app experience|
|15Feb17 17:00||GNW||Ericsson hits 5G milestone with expanded portfolio|
|15Feb17 07:00||GNW||World's first 5G federated network slicing grants global reach|
|10Feb17 08:00||GNW||Ericsson launches product for security automation|
|08Feb17 17:02||GNW||Press Invitation: Join the digital briefing on Ericsson launches|
|01Feb17 08:00||GNW||Ericsson and DNA to boost mobile broadband in sparsely populated areas in Finland|
|30Jan17 22:30||GNW||Ericsson, Qualcomm, and NETGEAR launch Telstras World-First Commercial Gigabit LTE Network with 150Mbps Upload Speeds|
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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%).
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.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Satellites tracking well
16 May 16
Avanti has reported Q3 trading that not only allows it to maintain its guidance for revenue growth, delivering a positive EBITDA in Q3, but clearly indicates a path towards free cash generation. With contract momentum building with high quality customers, recurring revenues are growing, satellite capex is almost complete and the financing facilities nearing finalisation appear more than sufficient to execute the plan. As this progress becomes more widely appreciated, we expect the share price to be released from its shackles and start to trend towards cash-based fair values. Our own capped DCF still returns a fair value of 427p per share.
12 Apr 16
Rigid-plastic-products manufacturer and waste-management services provider One51 is holding a general meeting on 21 April to gain the shareholder approvals required to issue shares for a potential flotation on AIM and the Enterprise Securities Market (ESM). In 2014, Ireland-based One51 paid 78p a share in cash for AIM-quoted Straight, which valued the wheeled-bins manufacturer at £10.7m. One51 subsequently bought a controlling stake in Canadian plasticproducts business IPL. A flotation would trigger a deal to swap One51 shares for the one-third of IPL that it does not currently own. The plastics division is the main focus of expansion. One51 is a substantial business. In 2015, revenues grew from €276.5m to €366m, while underlying profit almost doubled from €16.2m to €31.9m. A full 12-month contribution from IPL would have taken revenues to €473.5m and grown profit even more rapidly. Plastic products generate nearly two-thirds of revenues and a greater proportion of profit. Net debt was €120m at the end of 2015 and there is contingent consideration of more than €33m that could become payable. Numis and Davy have been appointed as advisers for the flotation, which is still dependent on market conditions. Although One51 is unlisted there has been regular trading in its shares since 2007 and by the end of March the shares were changing hands at €1.70 each.
Small Cap Breakfast
09 Feb 17
GBGI—Schedule One from the integrated provider of international benefits insurance focused on providing tailored insurance products. Looking to raise £32m with admission expected 22 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.
New Screen – Consistent Growth + “11 with legs”
17 Dec 15
To represent the theme of “Consistent Growth”, we introduce our second basket of small-cap stocks selected by a screening process. This will sit alongside our first (deep value) basket introduced and described in our note dated 26th May 2015 (Our first screen – 10 deep value stocks to consider). The screening criteria address both the extent AND the quality of growth in EPS and sales, which we consider add a worthwhile additional element to stock selection. The process results in a basket of 25 stocks, the performance of which we will track over time, allowing comparison of investment styles, but also highlighting interesting companies. We have taken a closer look at 11 stocks “11 with legs” (see list on the right) in this screen.