BUZZ-Ericsson falls on worries over component costs after slight Q2 sales miss
Jpmorgan Chase JPM | 0.00 |
Adds share reaction in 1st bullet; analyst comments, milestones in bullets 4 and 6
** Shares in Ericsson ERICb.ST fall 7.5% after it warned of rising component costs ahead, while posting Q2 sales slightly below forecasts
** Ericsson CFO warns of pricing pressure seen in chips, memory, and other components
** Jefferies says steadily rising component prices could have a bigger impact on the Q4 gross margin
** J.P.Morgan expects that investors will worry about the component cost impact on margins; JPM forecasts Q3 earnings to be around mid-single-digit below consensus
** Citing an impact from lower licensing revenues, the Swedish telecoms equipment maker posts Q2 sales at SEK 52.69 billion ($5.43 billion) against SEK 53.68 billion in consensus
** Ericsson shares set for worst day since January 2025, falling to the bottom of STOXX 600 .STOXX
($1 = 9.7053 Swedish crowns)
