Telefonaktiebolaget LM Ericsson Stock Price, News & Analysis

AT&T has joined Ericsson's Startup 5G program, marking it as the first U.S. service provider in this global initiative aimed at enhancing the commercialization of 5G technology. Through the program, AT&T aims to tap into a projected $3.7 trillion business opportunity in the 5G consumer market by 2030, collaborating with over 40 global startups. This partnership seeks to foster innovation in consumer experiences leveraging AR and VR technologies. The collaboration is a continuation of AT&T and Ericsson’s ongoing history in developing 5G networks.

Ericsson (NASDAQ: ERIC) enhances its radio access network portfolio with new products designed for 5G deployment and sustainability. Key additions include the dual-band Radio 4490, which boasts 25% lower power consumption, and the high-power version, 4490 HP, offering 50% more output power. The new radios support passive cooling, optimizing energy efficiency. Additional launches include the 64T/R Massive MIMO AIR 6428 and advanced software features that cut power usage by up to 70% during low traffic. These innovations support the acceleration of 5G rollouts globally.

Ericsson (NASDAQ: ERIC) has launched IoT Accelerator Connect, a platform to simplify cellular IoT connectivity for enterprises and developers. This solution addresses integration challenges, allowing enterprises to manage connectivity for millions of devices effortlessly. Features include IoT Accelerator Cloud Connect for secure device connection to cloud endpoints, IoT Accelerator Device Connect for simplified eSIM deployment, and a Developer Portal for application building support. By enhancing access to IoT services, Ericsson aims to accelerate IoT business growth across industries.

Ericsson (NASDAQ: ERIC) has reaffirmed its commitment to transparency amid ongoing media inquiries regarding a 2019 internal investigation into compliance issues in Iraq. The company cited serious breaches of its Code of Business Ethics involving improper financial practices and potential risks related to security and corruption. Although no direct links to terrorist financing were established, remedial actions have been taken, including employee exits and the termination of third-party contracts. Ericsson continues to enhance its compliance programs and is working with legal counsel to address findings from the investigation.

Ericsson (NASDAQ: ERIC) is addressing media inquiries concerning past compliance issues related to its operations in Iraq. An internal investigation conducted in 2019 revealed potential breaches of the Company's Code of Business Ethics by employees and suppliers. Following this, Ericsson implemented personnel and process remediation measures. The Company is currently reviewing the investigation in light of media findings and is prepared to take further action if necessary. Ericsson aims to maintain transparency regarding these matters.

On January 25, 2022, Ericsson reported strong financial results for Q4 and the full year 2021. Group organic sales rose by 2% in Q4 and 4% for the year, with sales in Mainland China impacting overall growth. Gross margin improved to 43.5% from 40.6%, while EBIT excluding restructuring charges reached SEK 12.3 billion, a 12% increase YoY. Net income was SEK 10.1 billion, up 41%, resulting in an EPS of SEK 3.02. The company plans to propose a dividend of SEK 2.50 per share, reflecting confidence in future growth, driven by advancements in 5G technology.

Ericsson (NASDAQ: ERIC) will release its financial report for Q4 and the full year 2021 on January 25, 2022, at 7:00 AM CET. A press release with the complete report will be published, available in PDF format on its website. CEO Börje Ekholm and CFO Carl Mellander will host a live webcast at 9:00 AM CET to discuss the report. Investors can join the event via the provided webcast link and are encouraged to call in 15 minutes early. The report will also be accessible on-demand after the event.

The Ericsson December 2021 report highlights consumer expectations for hybrid shopping experiences by 2030. A survey of early adopters reveals that almost 80% believe integrated physical and digital shopping concepts will be commonplace. The report outlines ten innovative consumer trends, including immersive beauty salons and hybrid gyms, emphasizing the role of technology like VR and AR. Notably, 35% of respondents prefer shopping malls to implement advanced technologies over homes. The report reflects insights from over 57 million early technology adopters globally.

On December 9, 2021, Ericsson (NASDAQ: ERIC) announced a commitment to empower one million children and young people by 2025 through enhanced access to digital learning and tools. This effort is part of the EDISON Alliance's 1 Billion Lives Challenge, which aids digital inclusion and aligns with the United Nations' Sustainable Development Goals. Ericsson's 'Connect To Learn' initiative has already benefited over 200,000 youths in 25 countries. CEO Börje Ekholm emphasized the importance of digital connection for equitable access to education and skills in a digital economy.