American Depository Shares of Ericsson ( NASDAQ: ERIC ) fell as much as 7% on Friday after the company posted a large earnings per share miss, which overshadowed its sales beat for the fourth quarter.
Q4 GAAP EPS of SEK1.82 was short of consensus by SEK0.70. However, the company recorded revenue of SEK86B,+20.6% Y/Y, which topped estimates by SEK1.08B.
Ericsson, during a call with analysts, said it expects 2023 to be "rather choppy" with near-term uncertainties and macroeconomic headwinds, which will will likely impact operator CapEx.
Ericsson recorded a SEK2.3 billion provision during the quarter to potentially settle certain old prosecution and breach notices from U.S. authorities.
Separately, CEO Börje Ekholm said the company is fully cooperating with the DoJ and the SEC, with respect to past matters described in the company's 2019 Iraq investigation report.
Other Q4 metrics: gross margin 41.4% vs. 43.2% last year, EBIT margin 9.1% vs 16.6%, net income SEK 6.2B vs SEK 10.1B.
ERIC down ~46% in 2022.
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Ericsson stock slips after Q4 profit miss, company signals a choppy year ahead