After reaching an important support level, Ericsson (ERIC) could be a good stock pick from a technical perspective. ERIC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
ERIC posts strong Q3 earnings as cost reduction efforts and operating efficiencies lift margins despite regional weakness.
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC ) Q3 2025 Earnings Call October 14, 2025 3:00 AM EDT Company Participants Daniel Morris - Head of Investor Relations Borje Ekholm - President, CEO, Head of Segment Enterprise & Director Lars Sandstrom - Senior VP, Head of Group Function Finance & CFO Conference Call Participants Andrew Gardiner - Citigroup Inc., Research Division Erik Lindholm-Rojestal - SEB, Research Division Sébastien Sztabowicz - Kepler Cheuvreux, Research Division Andreas Joelsson - DNB Carnegie, Research Division Sandeep Deshpande - JPMorgan Chase & Co, Research Division Daniel Djurberg - Handelsbanken Capital Markets AB, Research Division Jakob Bluestone - BNP Paribas Exane, Research Division Felix Henriksson - Nordea Markets, Research Division Ulrich Rathe - Sanford C. Bernstein & Co., LLC.
Ericsson's CEO hinted that there may be higher dividends or share buybacks coming.
Continuing cost-saving efforts boosted profitability and results also benefited from the $1 billion sale of its Iconectiv connectivity services business.
Swedish telecoms gear maker Ericsson reported a rise in quarterly core earnings that beat expectations on Tuesday, as operational improvements drove gross margins to sustainable levels despite a decline in sales.
Ericsson is upgraded to a "Buy" with a price target raised to 100 SEK, citing strong fundamentals and improving prospects. ERIC's transition from hardware to software, wind-down of restructuring charges, and robust cash position support the bullish outlook. Risks include margin pressure from open-source competition and potential legal disputes, but software growth and dividend safety offset concerns.
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Swedish telecom gear maker Ericsson said on Monday it has got an eight-year deal worth 12.5 billion Swedish crowns ($1.33 billion) to supply 5G communications equipment to VodafoneThree's UK mobile network.
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Ericsson stock (NASDAQ: ERIC) decreased by nearly 10% over the last five trading days, lagging behind the general market despite presenting a Q2 earnings report that exceeded expectations. The decline appears to be associated with a combination of macroeconomic worries, regional shortcomings, and cautious forecasts, which overshadowed substantial margin improvements and a notable return to profitability.
ERIC beats Q2 earnings forecasts on margin gains and cost cuts, but revenues fall short across key segments.