Ericsson Shares Plunge 10% Amid Weak Sales, Losses

Ericsson's shares fell over 8% following disappointing fourth-quarter results, with weak sales in India and struggles in its enterprise division significantly impacting profits. The company's adjusted EBITA missed analysts' expectations by 8%, reflecting challenges in multiple markets despite strong growth in North America. Sales in the South East Asia, Oceania, and India region dropped 28% year-on-year, attributed to reduced 5G investment levels by major Indian telecom carriers. CEO Börje Ekholm expressed cautious optimism about the core business, noting potential stabilization in the overall market. While Ericsson's revenue slightly increased, the losses in its non-core segments and a one-time impairment in Ericsson Ventures weighed heavily on earnings. Looking ahead, Ericsson anticipates continued headwinds in the first quarter of 2025, with restructuring costs likely to remain high.