# Ericsson’s quarterly core profit misses expectations
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-18
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Ericsson's Q1 core profit fall, misses expectations
Meta Description: Ericsson's Q1 core earnings fail to meet forecasts, facing challenges in high-margin 5G markets like the US. Despite higher net sales, company experiences
URL: https://financedigest.com/ericssons-quarterly-core-profit-misses-expectationshtml

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# Ericsson’s quarterly core profit misses expectations

STOCKHOLM (Reuters) -Sweden’s Ericsson on Tuesday reported first-quarter core earnings that missed expectations as telecom customers in high-margin countries such as the United States held back on spending on 5G equipment.

The company’s quarterly adjusted operating earnings fell to 3 billion Swedish crowns ($290.03 million) from 4.7 billion crowns a year earlier, missing analysts’ mean forecast of 3.28 billion, according to Refinitiv data.

Ericsson, which announced plans to cut 8,500 employees in February, has seen overall margins erode as growth now mainly comes from fiercely price competitive markets such as India rather than high-margin markets like the U.S.

Its [reported gross margin for the quarter](https://www.financedigest.com/aon-reports-first-quarter-2018-results.html "Aon Reports First Quarter 2018 Results") fell to 38.6% from 42.3%.

However, net sales rose 14% to 62.6 billion crowns, [beating estimates](https://www.financedigest.com/ibm-beats-first-quarter-profit-estimates-signals-demand-holding-up.html "IBM beats first-quarter profit estimates, signals demand holding up") of 60.43 billion.

($1 = 10.3438 [Swedish crowns)](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps")

(Reporting by Supantha Mukherjee in Stockholm, editing by Terje Solsvik)


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