We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ericsson (ERIC) Boosts R&D Capabilities With Key Funding
Read MoreHide Full Article
Ericsson (ERIC - Free Report) recently secured two funding agreements with the European Investment Bank (EIB), totaling EUR 420 million, with an initial disbursement of EUR 250 million in December 2023. This strategic move is aimed at fortifying Ericsson's financial position and enhancing its research and development (R&D) initiatives in advanced wireless technology.
The funds are designated to support Ericsson's R&D endeavors from 2023 to 2025 and will play a pivotal role in its commitment to achieving a Net Zero target by 2040. The investments align with its broader goal of reducing energy consumption in global mobile networks, thus contributing to environmental sustainability. The investments further underscore the positive impact these developments will likely have on operator customers and various industrial sectors.
Importantly, this funding serves as a key component of Ericsson's overall financial strategy, complementing other funding sources. In December 2023, Ericsson inked a EUR 100 million green funding agreement with the Nordic Investment Bank (NIB), specifically allocated for R&D in wireless technology. Furthermore, in November 2023, Ericsson successfully issued a green euro-denominated 500 million 4.5-year bond, reinforcing its commitment to sustainable financing.
The secured funding positions Ericsson to advance its R&D capabilities, contributing significantly to its growth and sustainability objectives. As the company channels these resources toward cutting-edge wireless technology, it is poised to benefit from increased competitiveness and energy efficiency, ultimately creating positive impacts across various sectors.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
The company focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has gained 0.5% over the past year compared with the industry’s growth of 6.1%.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%. It has a long-term earnings growth expectation of 26.5%.
Workday is a 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 that makes it easier for organizations to provide analytical insights and decision support.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) 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.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Juniper Networks Inc. (JNPR - Free Report) , carrying a Zacks Rank #2, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build network infrastructure used for services and applications based on a single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products.
It delivered an earnings surprise of 6.5%, on average, in the trailing four quarters. Juniper has a long-term earnings growth expectation of 9.9%. It has a VGM Score of B.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ericsson (ERIC) Boosts R&D Capabilities With Key Funding
Ericsson (ERIC - Free Report) recently secured two funding agreements with the European Investment Bank (EIB), totaling EUR 420 million, with an initial disbursement of EUR 250 million in December 2023. This strategic move is aimed at fortifying Ericsson's financial position and enhancing its research and development (R&D) initiatives in advanced wireless technology.
The funds are designated to support Ericsson's R&D endeavors from 2023 to 2025 and will play a pivotal role in its commitment to achieving a Net Zero target by 2040. The investments align with its broader goal of reducing energy consumption in global mobile networks, thus contributing to environmental sustainability. The investments further underscore the positive impact these developments will likely have on operator customers and various industrial sectors.
Importantly, this funding serves as a key component of Ericsson's overall financial strategy, complementing other funding sources. In December 2023, Ericsson inked a EUR 100 million green funding agreement with the Nordic Investment Bank (NIB), specifically allocated for R&D in wireless technology. Furthermore, in November 2023, Ericsson successfully issued a green euro-denominated 500 million 4.5-year bond, reinforcing its commitment to sustainable financing.
The secured funding positions Ericsson to advance its R&D capabilities, contributing significantly to its growth and sustainability objectives. As the company channels these resources toward cutting-edge wireless technology, it is poised to benefit from increased competitiveness and energy efficiency, ultimately creating positive impacts across various sectors.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
The company focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has gained 0.5% over the past year compared with the industry’s growth of 6.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ericsson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%. It has a long-term earnings growth expectation of 26.5%.
Workday is a 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 that makes it easier for organizations to provide analytical insights and decision support.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) 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.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Juniper Networks Inc. (JNPR - Free Report) , carrying a Zacks Rank #2, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build network infrastructure used for services and applications based on a single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products.
It delivered an earnings surprise of 6.5%, on average, in the trailing four quarters. Juniper has a long-term earnings growth expectation of 9.9%. It has a VGM Score of B.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.