For FY24, Ericsson Forecasts A Seasonal Trend With Networks Sales Declining By 25% And Cloud Software And Services By 34% On Average Between Q4 And Q1 Over The Past Three Years; Expects Networks Gross Margin To Be In The Range Of 39-41% In Q1
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Ericsson anticipates a seasonal decline in sales for FY24, with Networks sales expected to drop by 25% and Cloud Software and Services by 34% on average from Q4 to Q1, based on the past three years' data. The company also forecasts a Q1 gross margin for Networks to be between 39-41%.
January 23, 2024 | 6:50 am
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Ericsson expects a significant seasonal decline in sales for FY24, with Networks and Cloud Software and Services sales dropping by 25% and 34% respectively from Q4 to Q1. Networks gross margin is projected to be between 39-41% for Q1.
The anticipated decline in sales for both Networks and Cloud Software and Services is significant and likely to be viewed negatively by investors, potentially leading to a short-term decrease in ERIC's stock price. The gross margin forecast, while within a reasonable range, may not be sufficient to offset concerns about the sales decline.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100