By Dominic Chopping
STOCKHOLM--Sweden's Ericsson is due to report first-quarter earnings on Friday. Here is what you need to know:
NET PROFIT: The telecom-equipment maker is expected to post a net profit of 3.54 billion Swedish kronor ($386.3 million), according to a consensus provided by FactSet, compared with 4.22 billion kronor in the same period a year prior.
SALES: A FactSet forecast expects sales to fall 7.5% to 50.92 billion kronor from 55.03 billion kronor a year earlier. The stronger Swedish krona is expected to be a headwind to sales, both on the quarter and on the year, Jefferies analysts said.
The stock is up around 38% over the last 12 months and trades at 109.55 kronor on Thursday.
WHAT TO WATCH:
--Ericsson guided for a first-quarter adjusted gross margin in the networks unit of 49% to 51%. The strengthening of the krona is expected to have a small positive impact on operating costs though, so Jefferies expects Ericsson to report a networks gross margin of 50%. The bank expects an overall group gross margin of 48% and an operating margin of 10.6%.
--Ericsson is sharpening the focus of its networks business on markets like the U.S., India and Japan where Chinese competition is limited, while at the same time de-emphasizing some markets like Latin America. The company expects sequential first-quarter network sales growth to be broadly similar to three-year average seasonality of a 25% decline.
--The company expects a flat overall network market this year, but Jefferies says the continuing war in the Middle East could be a new headwind, especially given Ericsson's exposure to operators in the region.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 16, 2026 08:55 ET (12:55 GMT)
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