Ericsson (NASDAQ:ERIC) stock isn’t doing so hot on Thursday as the company admits that inflation is starting to have an impact on its business.
The company said as much during its earnings report for the second quarter of 2022. It noted that ongoing global economic headwinds, such as shipping and inflation, are affecting its costs to operate. The company is attempting to mitigate these factors by adjusting prices as contracts expire.
On the flip side of that, Ericsson does note that demand for 5G continues to be strong. The company says that the expansion of 5G is still in its early phase. That means there’s still plenty of work to be done in developing the 5G network.
Looking at the company’s earnings for the second quarter of 2022, the results were mixed. It reported earnings per share of 1.39 krona, as compared to Wall Street’s estimate of 1.69 krona. Revenue came in at 62.5 billion krona, while analysts’ were looking for 61.71 billion krona.
Börje Ekholm, president and CEO of Ericsson, said the following in the earnings report.
“We believe the best way to compensate for cost increases is the continued investment in technology to increase the cadence of bringing new innovative solutions to the market.”
ERIC stock is down 9.8% as of Thursday morning and is down 38.7% since the start of the year.
There’s more recent stock market news that traders will want to read about below!
InvestorPlace has all of the latest stock news traders need to know about for Thursday! A few examples include everything happening with Tesla (NASDAQ:TSLA), Unity Software (NYSE:U), and ContraFect (NASDAQ:CFRX) shares today. You can catch up on all of that news at the following links!
More Stock Market News for Thursday
- TSLA Stock Will Shake Off Autopilot Exec’s Departure
- Cathie Wood Bets Big on Unity Software (U) Stock. Here’s Why.
- Why Is ContraFect (CFRX) Stock Down 80% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
