Equity Profile

ERIC

Telefonaktiebolaget LM Ericsson (publ)

Information TechnologyCommunications Equipment$41.7B

Jul14Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Telefonaktiebolaget LM Ericsson (publ), known as Ericsson, operates in the Information Technology sector, primarily focusing on communications equipment. As a major player in the telecommunications industry, Ericsson is pivotal in the rollout of 5G technology and network infrastructure, which are critical for enhancing global connectivity and digital transformation.

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a key indicator of the company's profitability and will help investors gauge how well Ericsson is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential to understand the demand for Ericsson's products and services, especially in the competitive 5G market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ERIC Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-70.69%

Avg Stock Reaction

+2.46%

Last Quarter Recap

In Q1-2026, Ericsson reported an EPS of $0.03, significantly missing estimates of $0.11, resulting in a 6.50% drop in stock price the following day. The disappointing earnings raised concerns about the company's ability to meet market expectations.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations are mixed as Ericsson's recent earnings miss has left investors cautious. Analysts are looking for signs of recovery in profitability and revenue growth in the upcoming report.

Bull Case

If Ericsson can demonstrate strong revenue growth and improved EPS, it could signal a turnaround, boosting investor confidence and stock price.

Bear Case

Conversely, continued poor performance or lack of clear guidance on 5G deployments could lead to further declines in stock price, as investors may lose faith in the company's recovery.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the updated EPS forecast for Q2-2026?

Given the significant miss last quarter, any guidance on EPS will be crucial for assessing the company's recovery trajectory.

How is Ericsson progressing with its 5G deployment plans?

As 5G is a key growth area, clarity on deployment progress will help investors understand future revenue potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be overly cautious following the last earnings miss, underestimating the potential for a rebound in demand for 5G technology, which could drive significant revenue growth.

Supporting Evidence

Options are pricing a 12.24% move, indicating expectations for volatility that may not align with historical performance.

The average absolute 1-day move in past quarters has been 9.65%, suggesting that the market may react more favorably than anticipated.

Key Risk

If 5G deployment updates indicate stronger-than-expected demand, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Ericsson's ability to recover from recent earnings misses and its progress in the competitive 5G market.

Bull Confirmed If

A revenue growth rate of over 10% year-over-year would confirm the bull case, indicating strong demand for Ericsson's products.

Bear Confirmed If

If EPS falls below $0.02, it would confirm the bear case, reflecting ongoing struggles in profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, suggesting that investors are anticipating volatility around the earnings report.

Options are pricing ±12.2% while ERIC has averaged ±9.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

40.1%

Calls (290K)P/C Ratio: 0.01Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

This setup has occurred 29 times across Information Technology in the last 2 years. 20 of 29 (69%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 8.2%, with a raw directional average of +3.5% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests a potential stock increase of around 7.20%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line but cautious, the stock may see a muted response as investors weigh management's commentary on future growth.

Miss

A miss could lead to a decline of about 5.45%, reinforcing concerns about the company's performance and market position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment timelines and customer adoption rates.
2Insights into cost management strategies and their impact on profitability.
3Details on new contracts or partnerships that could drive future revenue.
4Management's outlook on market conditions and competitive landscape.
5Any commentary on technological advancements or innovations in Ericsson's product offerings.

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Fastenal Company

Company Snapshot

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a key indicator of the company's profitability and will help investors gauge how well Ericsson is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential to understand the demand for Ericsson's products and services, especially in the competitive 5G market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ERIC Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-70.69%

Avg Stock Reaction

+2.46%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations are mixed as Ericsson's recent earnings miss has left investors cautious. Analysts are looking for signs of recovery in profitability and revenue growth in the upcoming report.

Bull Case

If Ericsson can demonstrate strong revenue growth and improved EPS, it could signal a turnaround, boosting investor confidence and stock price.

Bear Case

Conversely, continued poor performance or lack of clear guidance on 5G deployments could lead to further declines in stock price, as investors may lose faith in the company's recovery.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the updated EPS forecast for Q2-2026?

Given the significant miss last quarter, any guidance on EPS will be crucial for assessing the company's recovery trajectory.

How is Ericsson progressing with its 5G deployment plans?

As 5G is a key growth area, clarity on deployment progress will help investors understand future revenue potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be overly cautious following the last earnings miss, underestimating the potential for a rebound in demand for 5G technology, which could drive significant revenue growth.

Supporting Evidence

Options are pricing a 12.24% move, indicating expectations for volatility that may not align with historical performance.

The average absolute 1-day move in past quarters has been 9.65%, suggesting that the market may react more favorably than anticipated.

Key Risk

If 5G deployment updates indicate stronger-than-expected demand, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Ericsson's ability to recover from recent earnings misses and its progress in the competitive 5G market.

Bull Confirmed If

A revenue growth rate of over 10% year-over-year would confirm the bull case, indicating strong demand for Ericsson's products.

Bear Confirmed If

If EPS falls below $0.02, it would confirm the bear case, reflecting ongoing struggles in profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, suggesting that investors are anticipating volatility around the earnings report.

Options are pricing ±12.2% while ERIC has averaged ±9.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

40.1%

Calls (290K)P/C Ratio: 0.01Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests a potential stock increase of around 7.20%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line but cautious, the stock may see a muted response as investors weigh management's commentary on future growth.

Miss

A miss could lead to a decline of about 5.45%, reinforcing concerns about the company's performance and market position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment timelines and customer adoption rates.
2Insights into cost management strategies and their impact on profitability.
3Details on new contracts or partnerships that could drive future revenue.
4Management's outlook on market conditions and competitive landscape.
5Any commentary on technological advancements or innovations in Ericsson's product offerings.