Making strides on gross margins

Encouraging margin beat, adj. EBITA 18% above cons. Small changes to FY'24e adj. EBITA, improved margins in H2e. Positive earnings trajectory ahead at 7x EV/EBITA adj. – BUY.

Adj. EBITA well above cons

Q1e will be soft, H2e looking better

We expect a weak Q1: adj. EBITA -45% y-o-y. '24e EBITA cut by 4% on lower sales assumptions. Weak H1 outlook, but maintain BUY on a better H2e.

5G in India: continued soft data for March

Huawei continues to top R&D tables

More cost savings

5G in India: soft data for Feb

CFO meeting

India trending down

Near-term headache, but improvements in H2e

Disappointing sales miss, but adj. EBITA 6% above cons. '24e EBITA cut 8% on lower sales. We reiterate BUY on improved profitability after weak Q1e.

6% adj. EBITA beat, better FCF

Look beyond Q4

We expect a weak Q4: adj. EBITA -15% y-o-y. FX headwinds, but we lift '25e EBITA by 3% on the AT&T contract. We reiterate BUY on improved profitability in 2024e.

No smoke without...

Margin recovery needed for share price gains

Weaker-than-expected Q4e outlook

Better GM warrants a positive SP reaction

Share to benefit from earnings growth in '24e

Soft Q3e and 2023e due to multiple headwinds, but earnings growth likely to improve in '24e. Reset expectations and low valuation - BUY, TP SEK 70 (80).

Risk to '24 outlook increasing

Q2'23: weak Q3 outlook

Q2'23e: H2 outlook the key

Q2 results on 14 July: bottoming margins well flagged. Q3 and H2 outlook will be key for the shares. Estimates well below Ericsson's '24 targets: BUY.