LM Ericsson Telephone, the Swedish telecommunications equipment maker, saw its stock plummet by a staggering 11.12% during Friday's trading session. The sharp decline came on the heels of the company's fourth-quarter 2024 earnings report and full-year results release.
While Ericsson's adjusted earnings per share of $0.20 for Q4 2024 met analysts' expectations, the company's revenue of $6.77 billion narrowly missed forecasts. However, the primary concern for investors was the company's struggling enterprise division, which offset the strong performance in its core networks business.
Analysts from firms like JPMorgan and Danske Bank highlighted the disappointing results from Ericsson's enterprise division, which has been grappling with issues related to the acquisition of Vonage. The company has already written down approximately $4 billion of the $6.2 billion acquisition price, underscoring the challenges faced in this segment.
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