Ericsson Stock Plummets Pre-Market As India Slowdown Weighs On Q4 Profits: Retail Stays Extremely Bullish

U.S.-listed shares of Ericsson (ERIC) were down over 10% in pre-market trade on Friday as the telecom equipment maker missed fourth-quarter profit estimates, citing weakness in its India market. 

If pre-market losses hold, this will mark the stock's largest single-day drop in over a year, sending it to a one-month low, yet retail sentiment on Stocktwits remains resilient. 

Earnings per share came in at $0.16, missing analysts’ expectations of $0.20, according to data from Finchat. 

Net sales for the quarter grew 1% year-over-year to $6.7 billion, in line with estimates, while profit rose 21% to $544 million.

North American sales surged 54%, driven by strong demand from telecom giants such as AT&T and Verizon. 

However, a double-digit decline in sales across Asia—primarily due to a slowdown in India—overshadowed these gains.

“North America growth was strong for the third quarter in a row, and we also had slight growth in Europe for the second quarter in a row,” CEO Lars Sandstrom said during the earnings call. “The other markets declined, particularly India, where investment levels have stabilized.”

Sandstrom also noted the potential impact of proposed tariffs on European Union companies under the new U.S. administration, adding that the company is actively monitoring the situation.

“Tariffs could have an impact going into 2025. But I think we are all waiting a little bit to see what is going to happen there. But we are working on that continuously trying to balance and utilize the system we have,” he said.

Ericsson Sentiment and Message Volume on Jan.24 as of 8:10 a.m. ET | Source: Stocktwits

Despite the earnings miss, retail sentiment on Stocktwits surged to ‘extremely bullish’ from ‘bullish’ a day ago, as trading chatter spiked to ‘extremely high’ levels as investors on the platform largely viewed the earnings as positive.

Ericsson’s stock has gained nearly 50% over the last year and is up 9% year-to-date.

($1 = 10.94 Swedish Krona)

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