Ericsson ERIC recently partnered with PGE Dystrybucja, a Poland-based electricity distributor, to implement the LTE450 network. The initiative will bolster Poland’s energy infrastructure, improve the reliability of energy supply, accelerate service delivery and support the integration of renewable energy sources. With the deployment spanning 510 radio sites equipped with state-of-the-art Ericsson outdoor cabinets, the partnership is poised to play a crucial role in Poland’s digital transformation of its energy sector.

Covering approximately 40% of Poland’s landmass, the LTE450 network represents a critical step in the country’s digital and energy infrastructure development. It will serve as the framework of an upgraded energy infrastructure, enabling real-time data exchange between millions of connected IoT devices, grid management systems and renewable energy sources. The deployment is backed by Ericsson’s research and development (R&D) centers in Lodz and Krakow, highlighting the company’s commitment to leveraging local expertise. This collaboration not only ensures the smooth execution of the project but also fosters innovation within Poland’s energy ecosystem.

Ericsson’s outdoor cabinets are installed across 510 radio sites, each equipped with a 36-hour smart lithium battery backup. This robust backup capability ensures uninterrupted network performance. With the inclusion of Ericsson Site Intelligence on Controller 6610, the network will feature advanced remote site management capabilities. This technology enables secure monitoring and control of radio sites, further strengthening the network’s reliability.

Moreover, the company’s expertise in telecommunications and digital infrastructure has made it the preferred choice to provide radio access network (RAN) and core network solutions for PGE’s LTE450 network in 2023.

Ericsson Price and Consensus

Ericsson price-consensus-chart | Ericsson Quote

Stockholm, Sweden-based Ericsson is a top company in communication networks, telecom services and support solutions. It is known for its leadership in telecommunications and is currently enhancing its focus to include Information and Communications Technology solutions. Since the third quarter of 2022, ERIC has reorganized its business into four main areas: Networks, Cloud Software and Services, Enterprise and Other.

Ericsson is focusing on reinforcing its top position in Mobile Networks. Amid a tough market environment, the company inked a $14 billion deal with AT&T, spanning five years. The partnership will leverage Ericsson's advanced wireless equipment to help AT&T speed up the rollout of an open and flexible RAN throughout the United States. 

However, weak demand trends across Asia, Africa, The Middle East and Oceania region amid strength in North America are affecting ERIC’s top-line performance. In the last reported quarter, its revenues fell 4% year over year to SEK 61.8 billion ($5.93 billion) due to a downtrend across its Networks, Cloud Software and Services, Enterprise and Other business segments. 

For the fourth quarter of 2024, revenues from the Networks, Cloud Software and Services segment are expected to follow below-average seasonality recorded between the third and the fourth quarters in the last three years. Management anticipates solid demand in North America to drive sales in the Networks segment amid continued softness in the Enterprise unit in the fourth quarter.

ERIC’s Zacks Rank & Stock Price Performance

Ericsson currently carries a Zacks Rank #2 (Buy). Shares of Ericsson have gained 66% over the past year compared with the industry’s growth of 41.7%.

Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Plexus Corp., Inc. PLXS, Workday Inc. WDAY and InterDigital, Inc. IDCC. IDCC & PLXS presently sport a Zacks Rank #1 (Strong Buy), whereas WDAY carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%

Plexus is a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ericsson (ERIC) : Free Stock Analysis Report

Plexus Corp. (PLXS) : Free Stock Analysis Report

InterDigital, Inc. (IDCC) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research