Ericsson: sets new long-term targets, shares drop
(CercleFinance.com) - Ericsson on Tuesday provided a new set of financial targets at the same time as announcing that it will accelerate growth and investments in 5G.
Beyond 2022, the Swedish telecom gear maker has set a group EBITA margin excluding restructuring charges of 15%-18%, it said at its Capital Markets Day.
The company aims to achieve this target thanks to sales growth, with software sales one of the cornerstones in reaching the long-term target, it added.
Its 2022 profitability target remains unchanged, with an operating margin of 12% - 14% excluding restructuring charges, the company said.
Ericsson - which launched its business strategy in 2017 - said its turnaround is now complete, having restored profitability, delivered organic growth and being on track to meet its 2020 financial targets.
The Swedish company also said that it plans to start a "strong" platform to accelerate growth and investments in 5G enterprise applications.
Investors weren't convinced by any means this morning in Stockholm, with the shares dropping over 4% in early morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Beyond 2022, the Swedish telecom gear maker has set a group EBITA margin excluding restructuring charges of 15%-18%, it said at its Capital Markets Day.
The company aims to achieve this target thanks to sales growth, with software sales one of the cornerstones in reaching the long-term target, it added.
Its 2022 profitability target remains unchanged, with an operating margin of 12% - 14% excluding restructuring charges, the company said.
Ericsson - which launched its business strategy in 2017 - said its turnaround is now complete, having restored profitability, delivered organic growth and being on track to meet its 2020 financial targets.
The Swedish company also said that it plans to start a "strong" platform to accelerate growth and investments in 5G enterprise applications.
Investors weren't convinced by any means this morning in Stockholm, with the shares dropping over 4% in early morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.