Ericsson Margin Guidance Weighs on Shares

Dow Jones
Jul 14

0729 GMT - Ericsson second-quarter earnings beat expectations, but gross margin guidance will likely weigh on the stock, J.P. Morgan analysts write. Ericsson beat consensus Ebitda expectations by 3.1%, despite a sales miss, on the back of better gross margins in both the key networks and cloud software & services divisions. However, the company is guiding for a gross margin of 49% at the midpoint in networks, which is below consensus expectations of 49.7%, the bank says. Third-quarter earnings are likely to be a mid single digit percentage below consensus, J.P. Morgan adds. "Overall, we expect investors will worry about the component cost impact on margins along with the mix impact i.e. lower U.S. revenue impacting margins into 2H." Shares fall 6.9%. (dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

July 14, 2026 03:30 ET (07:30 GMT)

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