The Q4 2024 earnings call reflected a strong financial performance with growth in North America and significant improvements in profitability and cash flow. However, challenges remain in other global markets and segments like Cloud Software and Services, compounded by potential geopolitical and economic pressures.

Company Guidance

In the earnings call for Ericsson's Q4 2024 results, the executives provided key guidance metrics highlighting a stabilizing market and improved financial performance. The company experienced a 2% organic sales growth in Q4, marking the first increase in eight quarters, driven by a 54% sales growth in North America and a 2% growth in Europe. The adjusted gross margin improved significantly by more than 500 basis points to 44.9%, while the adjusted EBITA margin increased by 300 basis points to 11%. Total headcount was reduced by 8%, contributing to an improved cost structure. Ericsson's free cash flow reached SEK 40 billion for the year, bolstered by strong working capital management and customer payments. The Board proposed a dividend of SEK 2.85 per share, reflecting a total of SEK 9.5 billion, emphasizing confidence in their strategy. Looking ahead, Ericsson expects to maintain Networks' gross margin between 47% and 49% in Q1 2025, with ongoing efforts to optimize operational efficiency and supply chain management.

Strong Financial Performance in Q4

Organic sales increased by 2% in Q4, marking the first sales growth in eight quarters. Adjusted gross margin improved to 46.3% from 41.1% in the prior year.

Record Cash Flow and Financial Position

Free cash flow for 2024 was SEK 40 billion, and the company ended the year with net cash of SEK 37.8 billion.

Growth in North America

Sales in North America increased by 54%, driven by the AT&T contract rollout and strong hardware and software demand.

Improved Profitability

Gross margin increased by more than 500 bps to 44.9%, and adjusted EBITA margin increased by 300 bps to 11%.

Strategic Partnerships and Innovations

New agreements, including the first open programmable network in Europe with MasOrange, and launch of the joint venture Aduna for network APIs.

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Telefonaktiebolaget LM Ericsson (DE:ERCA) 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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DE:ERCA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 18, 2018	2018 (Q2)	- / >-0.01	0.02	-147.62% (-0.03)	―	―
Oct 18, 2018	2018 (Q3)	- / 0.11	-0.064	270.15% (+0.17)	―	―
Jan 25, 2019	2018 (Q4)	- / -0.08	-0.145	44.08% (+0.06)	―	―
Apr 17, 2019	2019 (Q1)	- / 0.08	0.012	569.23% (+0.07)	―	―
Jul 17, 2019	2019 (Q2)	- / 0.06	-0.01	730.00% (+0.07)	―	―
Oct 17, 2019	2019 (Q3)	- / -0.19	0.109	-271.05% (-0.30)	―	―
Jan 24, 2020	2019 (Q4)	- / 0.13	-0.081	263.53% (+0.21)	―	―
Apr 22, 2020	2020 (Q1)	- / 0.06	0.083	-26.44% (-0.02)	―	―
Jul 17, 2020	2020 (Q2)	- / 0.08	0.06	30.16% (+0.02)	―	―
Oct 21, 2020	2020 (Q3)	- / 0.18	-0.187	194.36% (+0.36)	―	―

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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DE:ERCA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 24, 2025	€8.30	€7.90	-4.82%
Oct 15, 2024	€6.75	€7.80	+15.56%
Jul 12, 2024	€5.78	€5.93	+2.56%
Apr 16, 2024	€4.57	€4.72	+3.46%

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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