Why Ericsson Shares Are Higher Premarket Tuesday
Portfolio Pulse from Lekha Gupta
Ericsson (NASDAQ:ERIC) shares rose in premarket trading after reporting Q1 FY24 results, with a 15% Y/Y sales decline but improved margins and EPS beating consensus. The company anticipates further RAN market decline through the year but expects sales stabilization in H2 FY24. Exposure to ERIC can be gained through IShares U.S. Digital Infrastructure And Real Estate ETF (NYSE:IDGT) and Defiance Next Gen Connectivity ETF (NYSE:FIVG).
April 16, 2024 | 10:00 am
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POSITIVE IMPACT
Ericsson reported a 15% Y/Y sales decline but saw improved margins and EPS that beat consensus, with shares up 7.93% premarket.
Despite a sales decline, Ericsson's improved margins and EPS beating consensus likely contributed to the positive investor sentiment, driving the stock price up in premarket trading. The company's outlook for sales stabilization in H2 FY24 adds to the positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Defiance Next Gen Connectivity ETF is another way for investors to gain exposure to Ericsson, which has shown improved financial performance in Q1 FY24.
FIVG, like IDGT, provides exposure to Ericsson. The company's positive earnings report could attract more interest in ETFs holding ERIC, potentially benefiting FIVG's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Ericsson, which reported improved Q1 FY24 results, through IShares U.S. Digital Infrastructure And Real Estate ETF.
IDGT offers exposure to Ericsson, and the positive earnings report from Ericsson could lead to increased investor interest in ETFs like IDGT that include ERIC in their holdings.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50