Report
Ilya Kundozerov
EUR 101.80 For Business Accounts Only

Challenged by weak demand and market share loss, Ericsson turns inward to search for efficiencies.

We came away from Ericsson’s capital markets day with mixed feelings. The company laid out an ambitious plan to radically improve its gross margin and become a software leader in telecom, which we find a bit outlandish at this point. Positively, management admitted to the shortcomings of its former growth-focused approach based on services business that led to margin deterioration and loss of market share. At the same time, the shortcomings in execution as well as lack of agility due to ineffici...
Underlying
Telefonaktiebolaget LM Ericsson Class B

Ericsson provides communications technology and services. Co.'s services, software and infrastructure – especially in mobility, broadband and the cloud – enable the telecom industry and other sectors to do business, increase efficiency, improve the user experience and capture new opportunities. Co. has more than 110,000 professionals and customers in more than 180 countries. Co. provides support for networks with more than 2.5 billion subscribers. Co.'s core business areas are called Radio, Core and Transmission and Telecom Services. Co. divides its operations into three business segments: Networks, Global Services and Support Solutions.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Ilya Kundozerov

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