The earnings call presented a strong financial performance in North America and improved margins, but also highlighted challenges in sales growth across other regions, particularly in India and the Enterprise segment. The company's strategic initiatives, such as the JV for network APIs, show promise for future growth, but immediate market conditions remain challenging.

Company Guidance

During the Ericsson Q3 2024 earnings call, the company provided guidance reflecting both its strategic initiatives and current market conditions. Organic sales saw a slight decline of 1%, though improvements were noted compared to the previous quarter, with North America experiencing strong growth at 55% year-over-year. The gross margin improved significantly to 46.3% from 39.2% the previous year, driven by a favorable market mix, increased IPR sales, and ongoing business optimizations. EBITA rose to SEK 7.8 billion from SEK 4.7 billion, while free cash flow reached SEK 12.9 billion, highlighting the underlying business strength and strategic actions taken by the company. Despite the challenging global RAN market, Ericsson is focusing on programmable networks and new revenue streams, such as network APIs, to drive future growth. The company's outlook for Q4 anticipates below-average seasonality in Networks and Cloud Software and Services, with continued emphasis on cost control and strategic investments.

Improved Gross Margin

Gross margin increased to 46.3% from 39.2% last year, driven by strong performance in North America, higher IPR sales, and operational optimizations.

Strong Free Cash Flow

Free cash flow came in at SEK 12.9 billion, reflecting strong profitability and efficient working capital management.

North America Sales Growth

Sales in North America grew by 55% year-over-year, driven by the AT&T contract and selective network investments.

Enterprise Strategic Moves

Announced a JV with 12 global CSPs to aggregate and sell network APIs, positioning for future growth in the enterprise segment.

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Telefonaktiebolaget LM Ericsson (ERIC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ERIC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 24, 2025	2024 (Q4)	0.28 / -	0.097	―	―	―
Oct 15, 2024	2024 (Q3)	0.10 / 0.11	-0.844	113.03% (+0.95)
Jul 12, 2024	2024 (Q2)	0.04 / -0.32	-0.021	-1409.52% (-0.30)
Apr 16, 2024	2024 (Q1)	0.02 / 0.07	0.044	59.09% (+0.03)
Jan 23, 2024	2023 (Q4)	0.11 / 0.10	0.177	-45.20% (-0.08)
Oct 17, 2023	2023 (Q3)	0.04 / -0.84	0.14	-702.86% (-0.98)
Jul 14, 2023	2023 (Q2)	-0.04 / -0.02	0.127	-116.54% (-0.15)
Apr 18, 2023	2023 (Q1)	0.05 / 0.04	0.092	-52.17% (-0.05)
Jan 20, 2023	2022 (Q4)	0.21 / 0.18	0.325	-45.54% (-0.15)
Oct 20, 2022	2022 (Q3)	0.16 / 0.14	0.201	-30.35% (-0.06)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ERIC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 15, 2024	$7.54	$8.53	+13.13%
Jul 12, 2024	$6.28	$6.56	+4.46%
Apr 16, 2024	$4.70	$4.79	+1.91%
Jan 23, 2024	$5.65	$5.70	+0.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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