Ericsson Drops to Lowest Since 2017 After Disappointing Guidance
- EBITA margin in the fourth quarter seen at around 10%
- Ericsson also delayed when it hopes to hit EBITA margin target
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Ericsson AB shares fell to the lowest in six years after it said market weakness will persist into the fourth quarter and beyond, as the company struggles to counter reduced investment in fifth-generation mobile infrastructure from US and European operators.
“We expect the underlying uncertainty impacting our Mobile Networks business to persist into 2024,” the Swedish 5G-equipment maker said in a statement on its third quarter results on Tuesday.