Ericsson ERIC is selected by SoftBank Group Corp. to provide cloud-native 5G Core for its 5G Standalone Network. The solution comprises Ericsson’s Cloud Packet Core, Cloud Unified Data Management and Policy as well as Network Functions Virtualization Infrastructure. Ericsson currently has 99 commercial 5G agreements with operators and supports 54 live 5G networks in 27 countries.
The company is witnessing a healthy momentum in its business, based on the strategy to increase its investments for technology leadership, including 5G. Ericsson and SoftBank have been working together to deploy 5G technologies across the Japanese market. In May 2019, the Sweden-based telecom equipment maker was selected by SoftBank as its main 5G radio access network vendor.
Ericsson’s dual-mode 5G Core provides the container-based microservice architecture that will help SoftBank to develop novel business models and move to the next level of network operational efficiency. The company’s portfolio spans Networks, Digital Services, Managed Services and Emerging Business. Ericsson reached a milestone with the commercial availability of its Standalone 5G New Radio software for 5G mid and low bands.
Recently, Ericsson delivered solid second-quarter 2020 results, with the bottom and the top line surpassed the Zacks Consensus Estimate. Ericsson is optimistic about the longer-term outlook. With current visibility, it maintains the Group targets for 2020 and 2022. The company’s patent licensing business continues to perform well on the back of a strong IPR portfolio. It has also accelerated R&D investments in Digital Services to capture further opportunities.
Ericsson’s shares have rallied 38% compared with 20.4% growth of the industry in the past three months. The company has a long-term earnings growth expectation of 26% compared with 14.8% of the industry.
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, T-Mobile US, Inc. TMUS and Ooma, Inc. OOMA. While Turtle Beach and T-Mobile sport a Zacks Rank #1 (Strong Buy), Ooma carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter earnings surprise of 46.4%, on average.
T-Mobile has a trailing four-quarter earnings surprise of 19.4%, on average.
Ooma has a trailing four-quarter earnings surprise of 228.2%, on average.
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