ERIC - Telefonaktiebolaget LM Ericsson GAAP EPS of -SEK 0.21 misses by SEK 1.56 revenue of SEK 64.4B; issues Q3 soft guidance

July, 14 2023 01:17 AM Ericsson

2023-07-14 01:17:59 ET

Telefonaktiebolaget LM Ericsson press release ( NASDAQ: ERIC ): Q2 GAAP EPS of -SEK 0.21 misses by $1.56 .
Revenue of SEK 64.4B (+3.0% Y/Y).
Group organic sales declined by -9% Y/Y.
Gross margin excluding restructuring charges was 38.3% (42.2%) primarily impacted by changed business mix in Networks. Reported gross margin was 37.4% (42.1%).
EBITA excluding restructuring charges amounted to SEK 3.7 billion with an EBITA margin of 5.7% (12.0%).
Reported EBITA was SEK 0.5 billion with restructuring charges amounting to negative SEK 3.1 billion.
Free cash flow before M&A was negative SEK 5.0 billion.
Outlook: "For Q3 we expect similar market mix and trends as in Q2. In addition, Q3 will benefit from an early impact of our strong focus on cost-out execution. Overall, we thus expect Q3 EBITA margin2 to be in line with or slightly higher than Q2, followed by a seasonally stronger Q4, the company said in a statement.
"Based on the expected recovery of the mobile networks market towards the end of the year, we remain focused on reaching the lower end of the 15-18% EBITA margin long-term target range in 2024," it added.

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