Key Trends To Watch As Ericsson Publishes Q2 2019 Results

by Trefis Team
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Ericsson (NASDAQ:ERIC) is expected to publish its Q2 2019 results shortly, reporting on a quarter that is likely to have seen stronger network equipment sales aided by the roll-out of commercial 5G operations in the United States. Below, we provide an overview of how the company has fared in recent quarters and the outlook for its business in Q2.

View our interactive dashboard analysis on What To Expect From Ericsson In Q2 2019? You can modify key drivers to arrive at your own estimates for Ericsson’s Q2 EPS.

How did Ericsson’s revenues trend in Q1 and what’s the outlook like for Q2 FY’19?

  • Revenues grew by about 13% year-over-year and by 7% sequentially to SEK 49 billion in Q1 2019.
  • We expect revenues to rise to about SEK 53 billion in Q2 2019.

How have Ericsson’s key segments performed and what’s the outlook?

Key Driver 1:

Network Revenues

  • Network revenues grew by about 17% YoY to about SEK 33 billion in Q1’19 driven by growing sales of 5G equipment in North America.
  • We expect the metric to grow to about SEK 37 billion in Q2.

Key Driver 2:

Digital Services

  • Digital services revenues expanded by almost 8% year-over-year to SEK 7.8 billion in Q1, driven by stronger services sales.
  • We expect the metric to rise to about SEK 8.3 billion by Q2.

Key Driver 3:

Managed Services

  • Managed services and emerging business revenues remained almost flat year-over-year in Q1.
  • We expect revenues to grow by about 6% sequentially to SEK 8 billion in Q2.

Estimating Ericsson’s Net Income

  • We expect net margins to expand modestly in Q2, as revenues grow faster than expenses.


Estimating Ericsson’s EPS In SEK

  • We expect EPS to improve slightly to about SEK 0.88 in Q2.


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