Telefonaktiebolaget L M Ericsson Class B

ERIC B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 99.00	Spp	Bwsfstc

Ericsson Earnings: Awful Results Aren’t Indicative of a Broken Business

Matthew Dolgin

Oct 17, 2023

Ericsson previously forecast a soft third quarter, but the results were even worse than we anticipated. Management said the fourth quarter looks similarly difficult and that current business conditions should continue into 2024. While we think the firm has stumbled in its capital allocation strategy—as witnessed by this quarter’s huge goodwill write-down—we don’t think the poor current results reflect a declining need for Ericsson’s products. We’re maintaining our SEK 95 fair value estimate and think the stock remains undervalued.

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