Zacks Research Brokers Boost Earnings Estimates for Ericsson

Key Points

• Zacks Research has increased its FY2026 EPS estimate for Ericsson from $0.52 to $0.56, while also forecasting Q4 2026 earnings at $0.17 EPS and FY2027 at $0.67 EPS.
• In its latest earnings announcement, Ericsson reported $0.16 EPS, exceeding analysts' expectations of $0.13, despite a 9.0% decline in quarterly revenue compared to the previous year.
• Ericsson's stock currently has a consensus rating of "Reduce" along with an average target price of $9.80, as different brokerages have provided mixed ratings recently.

Ericsson (NASDAQ:ERIC - Free Report) - Analysts at Zacks Research boosted their FY2026 EPS estimates for shares of Ericsson in a research report issued on Tuesday, November 4th. Zacks Research analyst Team now expects that the communications equipment provider will post earnings of $0.56 per share for the year, up from their prior forecast of $0.52. The consensus estimate for Ericsson's current full-year earnings is $0.48 per share. Zacks Research also issued estimates for Ericsson's Q4 2026 earnings at $0.17 EPS and FY2027 earnings at $0.67 EPS.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its earnings results on Tuesday, October 14th. The communications equipment provider reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The business had revenue of $5.91 billion for the quarter, compared to analysts' expectations of $57.16 billion. Ericsson had a net margin of 10.44% and a return on equity of 21.50%. The company's quarterly revenue was down 9.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.14 EPS.

A number of other brokerages have also recently commented on ERIC. Wall Street Zen cut shares of Ericsson from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 18th. BNP Paribas reissued an "underperform" rating on shares of Ericsson in a research note on Wednesday, September 3rd. Cfra Research raised shares of Ericsson to a "hold" rating in a research note on Wednesday, October 15th. Weiss Ratings raised shares of Ericsson from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Saturday, October 25th. Finally, Citigroup reissued a "neutral" rating on shares of Ericsson in a research note on Wednesday, October 22nd. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $9.80.

Ericsson Stock Performance

Shares of Ericsson stock opened at $9.75 on Thursday. The firm's fifty day simple moving average is $8.66 and its 200-day simple moving average is $8.30. The stock has a market capitalization of $32.65 billion, a price-to-earnings ratio of 13.18, a PEG ratio of 1.69 and a beta of 0.91. Ericsson has a 12 month low of $6.64 and a 12 month high of $10.35. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.17 and a quick ratio of 0.94.

Hedge Funds Weigh In On Ericsson

A number of institutional investors and hedge funds have recently made changes to their positions in ERIC. Allspring Global Investments Holdings LLC grew its stake in shares of Ericsson by 7.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 25,231 shares of the communications equipment provider's stock worth $196,000 after purchasing an additional 1,713 shares during the period. Diversify Wealth Management LLC grew its stake in shares of Ericsson by 18.2% during the 1st quarter. Diversify Wealth Management LLC now owns 119,008 shares of the communications equipment provider's stock worth $988,000 after purchasing an additional 18,360 shares during the period. Schechter Investment Advisors LLC grew its stake in shares of Ericsson by 9.5% during the 1st quarter. Schechter Investment Advisors LLC now owns 18,476 shares of the communications equipment provider's stock worth $143,000 after purchasing an additional 1,609 shares during the period. Diversify Advisory Services LLC grew its stake in shares of Ericsson by 65.3% during the 1st quarter. Diversify Advisory Services LLC now owns 33,660 shares of the communications equipment provider's stock worth $279,000 after purchasing an additional 13,293 shares during the period. Finally, Csenge Advisory Group acquired a new position in shares of Ericsson during the 1st quarter worth $148,000. 7.99% of the stock is owned by institutional investors and hedge funds.

Ericsson Company Profile

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.

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