This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ericsson Reports Second Quarter 2014


  • Sales in the quarter were SEK 54.8 (55.3) b. Sales for comparable units, adjusted for currency, decreased -1% YoY and increased 13% QoQ
  • Sales recovered compared to the previous quarter driven by growth in the Middle East, China and India, as well as continued capacity business in North America
  • Gross margin increased YoY to 36.4% (32.4%), driven by strong development in capacity business, increased IPR revenues and lower restructuring charges
  • With current visibility, key contracts awarded will gradually impact sales and business mix, in the second half of the year
  • Operating margin improved YoY to 7.3% (4.5%), mainly driven by stronger performance in segment Networks
  • Operating income amounted to SEK 4.0 (2.5) b.
  • Cash flow from operating activities was SEK 2.1 (4.3) b. 
SEK b. Q22014 Q22013  YoYchange Q12014 QoQchange Six months2014 Six months2013
Net sales 54.8 55.3 -1% 47.5 15% 102.4 107.4
Sales growth adj. for comparable units and currency - - -1% - 13% -4% 7%
Gross margin 36.4% 32.4% - 36.5% - 36.4% 32.2%
Operating income 4.0 2.5 62% 2.6 52% 6.6 4.6
Operating margin 7.3% 4.5% - 5.5% - 6.5% 4.3%
Net income 2.7 1.5 76% 1.7 57% 4.4 2.7
EPS diluted, SEK 0.79 0.45 76% 0.65 22% 1.44 0.82
EPS (Non-IFRS), SEK 1) 1.07 0.88 22% 0.90 19% 1.98 1.88
Cash flow from operating activities 2.1 4.3 -52% 9.4 -78% 11.5 1.3
Net cash, end of period 32.5 27.4 18% 43.6 -26% 32.5 27.4
1) EPS, diluted, excl. amortizations and write-downs of acquired intangible assets, and restructuring

Comments from Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC)

Sales for comparable units, adjusted for currency, recovered compared to the previous quarter and were down by -1% year-over-year. Operating margin improved year-over-year, mainly driven by stronger performance in segment Networks.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs