Morgan Stanley: Ericsson's Q3 Guidance to Get Investor Attention on Q2 Results
Morgan Stanley sees investors focusing on Ericsson's (ERIC-B.ST, ERIC-A.ST, ERIBR.HE) third-quarter financial guidance when the company posts its results for the three months ended June 30 on Tuesday. "We expect the sluggish market background to continue, with North American revenues in decline and higher semis input costs weighing on margins. However, efficiency actions have kept networks' margins stable, which is better than feared. Overall, we expect Q3 guidance to be some 100 bps lower than the recent trend, which implies 48-50% networks gross margin," the research firm said in a July 10 European earnings preview report. For the second quarter, the Swedish telecommunications group's net sales are forecast to stand at 53.08 billion kronor, against 56.13 billion kronor a year before. EBITA, excluding restructuring, is expected to decline to 6.60 billion kronor from the year-ago 7.42 billion kronor. The stock's rating remains at equal-weight.
Morgan Stanley sees investors focusing on Ericsson's (ERIC-B.ST, ERIC-A.ST, ERIBR.HE) third-quarter financial guidance when the company posts its results for the three months ended June 30 on Tuesday. "We expect the sluggish market background to continue, with North American revenues in decline and higher semis input costs weighing on margins.
However, efficiency actions have kept networks' margins stable, which is better than feared.
Overall, we expect Q3 guidance to be some 100 bps lower than the recent trend, which implies 48-50% networks gross margin," the research firm said in a July 10 European earnings preview report.
For the second quarter, the Swedish telecommunications group's net sales are forecast to stand at 53.08 billion kronor, against 56.13 billion kronor a year before.
EBITA, excluding restructuring, is expected to decline to 6.60 billion kronor from the year-ago 7.42 billion kronor.
The stock's rating remains at equal-weight.