Ericsson Poised for Growth: Q4 2024 Earnings Preview
Ericsson (ERIC) will announce its fourth-quarter 2024 results on January 24, before the market opens. In the previous quarter, the wireless equipment giant exceeded the Zacks Consensus Estimate by 2 cents.
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The company is expected to post year-over-year revenue growth for Q4 2024, driven by new customer contracts and increasing network investments. Enhancements in innovation, better working capital management, and ongoing cost optimizations are anticipated to boost performance.
Key Partnerships and Contracts
In the quarter, Ericsson launched a multi-year collaboration with MasOrange, the largest communications provider in Spain. Under this agreement, ERIC will work on integrating the networks of MASMOVIL and Orange Spain. Additionally, the company secured a 5G contract with Chunghwa Telecom to upgrade Taiwan’s network.
Furthermore, Epiroc, a notable player in mining equipment, has chosen Ericsson’s advanced private network solution to enhance digital operations within Mexico’s mining sector. These successful partnerships are likely to positively influence ERIC’s Q4 earnings.
During this quarter, Ericsson completed a groundbreaking 5G slicing automation project in Belgium with Orange Belgium. This was coupled with testing for 6G technologies, marking significant progress in the field. Moreover, Ericsson presented its new Compact Packet Core, a cloud-native solution that aims to improve network capabilities for communication service providers. Such innovations are expected to support revenue growth.
