Why Ericsson Stock Is Falling Today
Portfolio Pulse from Anusuya Lahiri
Ericsson's Q3 FY23 results show a 5% YoY sales decline to $5.96 billion, missing the consensus of $6.27 billion. The company reported an EPS loss and a 220 basis points contraction in adjusted gross margin due to business mix changes. Adjusted EBIT margin plunged by 460 bps to 6.0% as the adjusted EBIT declined 46% YoY. Ericsson expects lower than-normal seasonality in sales between Q3 and Q4 for Networks and Cloud Software and Services. The company's shares traded lower by 5.88% premarket.
October 17, 2023 | 11:22 am
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NEGATIVE IMPACT
Ericsson's Q3 FY23 results missed expectations, leading to a drop in premarket trading. The company's sales and EBIT margin declined significantly.
Ericsson's Q3 FY23 results missed the consensus, with a significant decline in sales and EBIT margin. This negative financial performance is likely to impact investor sentiment and drive the stock price down in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100