9.10 -0.13 (-1.41%)
After hours: 5:25PM EST
|Bid||9.21 x 46000|
|Ask||9.28 x 40700|
|Day's Range||9.18 - 9.31|
|52 Week Range||7.58 - 10.46|
|Beta (3Y Monthly)||0.41|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.11 (1.18%)|
|1y Target Est||10.89|
(Bloomberg) -- A unit of Ericsson AB pleaded guilty to foreign bribery and the parent company agreed to pay more than $1 billion to resolve a long-running U.S. corruption investigation involving payoffs in Asia and the Middle East.The Stockholm-based company admitted to a years-long campaign of corruption aimed at solidifying its grip on telecommunications business, U.S. Attorney Geoffrey S. Berman in Manhattan said in announcing the settlement that outlined tens of millions of dollars in illicit payments in five countries.“Through slush funds, bribes, gifts and graft, Ericsson conducted telecommunications business with the guiding principle that ‘money talks,’” Berman said in a written statement announcing the settlement.From 2000 to 2016, Ericsson conspired with others to violate the U.S. Foreign Corrupt Practices Act -- paying bribes, falsifying books and records and failing to implement reasonable internal accounting controls, the Justice Department said. The company bribed government officials through third-party agents and consultants, it said.The settlement includes a $520 million criminal penalty imposed by the U.S. Justice Department and a civil payment of about $540 million to the Securities and Exchange Commission. As part of a deferred-prosecution deal, an Egyptian subsidiary of the company pleaded guilty to a conspiracy charge.The company will add an independent monitor to ensure its compliance with anti-bribery laws as part of the settlement in federal court in New York, which had been expected.Ericcson didn’t immediately respond to a request for comment.The government, in its settlement announcement after the close of U.S. markets, outlined bribery spanning the globe.By way of a subsidiary, the company made approximately $2.1 million in bribe payments between 2010 and 2014 to high-ranking government officials in Djibouti to obtain a contract with the state-owned telecommunications company, it said. An Ericsson subsidiary entered into a sham contract and approved fake invoices to conceal the payments, it said.In China, Ericsson subsidiaries caused tens of millions of dollars to be paid to consultants and service providers over 16 years through 2016, the government said. Some of that went to fund a travel expense account in China that covered gifts, travel and entertainment for foreign officials, it said. The government outlined $45 million in off-the-book payments to create slush funds to win business in Indonesia, and described other off-the-book schemes in Vietnam and Kuwait aimed at winning business.“We will continue to pursue cases such as these in order to preserve a global commerce system free of corruption,” said Don Fort, chief of the Internal Revenue Service’s criminal investigation division. In September, Ericsson said it had set aside 12 billion kronor ($1.2 billion) to cover U.S. penalties. Ericsson has said it’s been cooperating with U.S. investigators since 2013.The Justice Department said Ericsson earned a 15% reduction in penalties for its cooperation. However, it said Ericsson didn’t receive full credit for cooperation because it didn’t disclose some allegations of corruption, didn’t produce certain documents and failed to take adequate disciplinary measures against some employees.Ericsson has been moving to resolve the matter as it competes with Nokia Oyj for 5G network supply contracts and tries to take advantage of a U.S.-led boycott against Huawei Technologies Co., an Ericsson rival.The $1 billion overall penalty is near the top of foreign-corruption cases and above those assessed against other telecommunications companies. Telia Co. paid $965 million in penalties in 2017 after admitting to paying hundreds of millions of dollars in bribes to a government official in Uzbekistan.(Rewrites and updates with details of bribes)\--With assistance from Niclas Rolander.To contact the reporters on this story: Tom Schoenberg in Washington at email@example.com;David Voreacos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Swedish mobile telecoms company Ericsson has agreed to pay over $1 billion to resolve a probe into corruption, including bribing of government officials, over many years in countries including China, Vietnam, and Djibouti, the U.S. Department of Justice said on Friday. Ericsson has entered into a deferred prosecution agreement related to its scheme to make and improperly record tens of millions of dollars in payments, the Department said. The total charges include a criminal penalty of more than $520 million and another $540 million to be paid to the U.S. Securities and Exchange Commission in a related matter.
While T-Mobile (TMUS) launches nationwide 5G network, Verizon (VZ) collaborates with Amazon's cloud computing arm, Amazon Web Services, for 5G edge computing.
As previously disclosed, Ericsson (NASDAQ: ERIC) is in discussions with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) regarding the resolution of their investigations of the Company's compliance with the U.S. Foreign Corrupt Practices Act (FCPA).
(Bloomberg) -- Ericsson AB is nearing a resolution of a long-running U.S. corruption investigation, according to two people familiar with the matter, a deal that could cost the telecommunications equipment maker more than $1 billion.Such an agreement, which the people said could be announced this week or next, would end probes by the Justice Department and the Securities and Exchange Commission into potential bribery in six countries where the company did business. In September, Stockholm-based Ericsson said it had set aside 12 billion kronor ($1.2 billion) to cover U.S. penalties.The head of the Justice Department’s criminal division hinted at an imminent resolution during a speech Wednesday at the American Conference Institute’s Foreign Corrupt Practices Act gathering in Maryland. Without naming Ericsson, Assistant Attorney General Brian Benczkowski said a corporate case to be announced soon would enable the Justice Department to finish the year with a total of about $1.6 billion in FCPA recoveries. A $1.2 billion penalty payment divided between the Justice Department and the SEC would be consistent with that figure.The Justice Department declined to comment. Ericsson said in an emailed statement that it “will not comment other than to confirm that the provision of $1.2 billion is still its current estimate of the amounts needed to cover the monetary sanctions, plus other related costs.”Ericsson has said it’s been cooperating with U.S. investigators since 2013. It hasn’t disclosed details of the conduct under investigation, though it said at the time that the probe related to a payment system used to win contracts in the 1990s. It said in September that the investigation covered a period ending in the first quarter of 2017 and involved FCPA breaches in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam.Ericsson is moving to resolve the probes as it competes with Nokia Oyj for 5G network supply contracts and tries to take advantage of a U.S.-led boycott against Huawei Technologies Co., an Ericsson rival. Ericsson said in July that the first big deployments in Asia would gradually pull down margins, although not enough to jeopardize profit targets for 2020.A penalty of $1 billion or more would put it near the top of FCPA cases and above penalties assessed against other telecommunications companies. Telia Co. paid $965 million in penalties in 2017 after admitting to paying hundreds of millions of dollars in bribes to a government official in Uzbekistan.(Adds Ericsson comment in fourth paragraph.)To contact the reporter on this story: Tom Schoenberg in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The move is the latest in a string of concerted efforts by the U.S. government to dissuade other sovereign countries from using Huawei and ZTE gear to preempt alleged spying and siphoning of data.
E. Ekholm has been the CEO of Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) since 2017. This report will, first...
Data call connects Bern, Switzerland and Gold Coast, Australia using Ericsson Spectrum Sharing over live commercial 5G networks and commercial form factor 5G smartphones
Ericsson's (ERIC) Operations Engine, advanced automation tools and agile data infrastructure will continue to provide Orange with reliable network connectivity for enhanced customer experience.
While Sprint (S) launches cloud-based commercial phone service dubbed Omni, Verizon (VZ) initiates trial run for dynamic spectrum sharing in 5G technology.
German Chancellor Angela Merkel called on European countries on Wednesday to agree a common approach towards China and the rollout of the next generation 5G mobile network. Some German lawmakers want to exclude China's Huawei from 5G contracts, following warnings by the United States that this could lead to spying for Beijing. Huawei denies the allegations made by Washington.
German Chancellor Angela Merkel called on European countries on Wednesday to aim for a common approach towards China and on its possible involvement in the 5G mobile network. "One of the biggest dangers ... is that individual countries in Europe will have their own policies towards China and then mixed signals will be sent out," she told lawmakers. "That would be disastrous not for China but for us in Europe," Merkel said, adding Germany and France must also try to agree a common approach.
Verizon (VZ) partners Ericsson and Qualcomm for demonstrating the viability of Dynamic Spectrum Sharing for seamless deployment of 5G coverage on both 4G and 5G devices, based on traffic demand.
Ericsson's (ERIC) report says that 5G will cover up to 65% of the world's population by the end of 2025 and handle 45% of global mobile data traffic.
The turn of events offers a golden opportunity to other telecom equipment firms to fill the void and strengthen their position in the market, thereby augmenting top-line growth.
Sweden's Ericsson expects the number of 5G subscriptions to reach 2.6 billion by the end of 2025, up from 13 million in 2019, with network coverage offering access to 65 percent of the world's population, it said on Monday. With its current momentum, 5G uptake is expected to be significantly faster than that of LTE, the telecoms network equipment maker said in its biannual Mobility Report. It added that 5G subscriptions would account for 29 percent of all mobile subscriptions in 2025.
Ericsson (NASDAQ: ERIC) expects the global number of 5G subscriptions to top 2.6 billion within the next six years, driven by sustained momentum and a rapidly developing 5G ecosystem. The forecast is included in the November 2019 edition of the Ericson Mobility Report, alongside a range of other forecasts with an end-of-2025 timeline and communications service provider insights.
I can see why investors would be tempted to buy the dip in Nokia (NYSE:NOK). The sell-off since a disastrous third-quarter report has brought valuation back in line. The 5G tailwind that attracted investors to Nokia stock still exists. Yes, the news in the Q3 release was disappointing -- but a lower price, in theory, could offset some of that disappointment.Source: RistoH / Shutterstock.com That said, the case on paper has a very big problem in practice. Nokia stock simply can't be trusted at this point.The 5G tailwind was supposed to benefit results this year and next -- not in 2021, as is now hoped. Market share is eroding. On paper, NOK stock does look cheap -- but looking at the actual business, it seems increasingly clear that it should be.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 5G and Nokia StockThe Q3 earnings report unquestionably was disappointing. NOK stock fell nearly 24%, its largest loss in 19 years. Interestingly, the quarter itself came in ahead of analyst estimates. But it was guidance that led to the enormous sell-off. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities Heading into the quarter, Nokia had guided for 2019 adjusted earnings per share of €0.25-€0.29, which was then set to grow sharply to €0.37-€0.42 in 2020. The outlook for both years was slashed after Q3.For 2019, Nokia now sees adjusted EPS of €0.18-€0.24. That's actually not that big a decline from original expectations for this year, particularly given that Nokia already had said after the second quarter that there were risks to meeting 2019 guidance. But in 2020, Nokia now sees adjusted EPS of just €0.20-€0.30. Adjusted operating margins are now expected at 8-11%, against a prior 12-16%.The culprit was the company's networks business and particularly its 5G portfolio. Those products were supposed to drive the growth and margin expansion Nokia projected, but that's no longer the case. Nokia clearly is losing market share to Scandinavian rival Ericsson (NASDAQ:ERIC) as both companies try to take advantage of the political pressure being applied to Chinese rival Huawei.As a result, Nokia is spending behind the business to try and lower prices and better compete with Ericsson, in particular. That rival has opted to lower upfront pricing in hopes of making up the profit through higher-margin service contracts. Nokia apparently has to match that pricing -- but that's not the only issue here. Management and Execution ProblemsI've long been skeptical of the turnaround case for Nokia stock for two core reasons. As I detailed earlier this year, this is a company with a long history of overpromising and underdelivering.Last month's news is just the latest in a long history of disappointments. And in that context, it's hard to trust the new guidance going forward. Why is this time different?Certainly, management isn't inspiring any confidence at this point. CEO Rajeev Suri told Bloomberg in an interview that part of his company's problem was that its acquisition of Alcatel-Lucent created "more work," as the company had to migrate all of the legacy Alcatel-Lucent products to the Nokia nameplate. But that acquisition was completed three years ago, and certainly, Suri was aware of that issue when the company reiterated guidance in August.This simply doesn't seem like a management team on top of its business. It's losing to Ericsson. It was just six months ago that Nokia was talking up the fact that it hadn't lost a single 4G customer in the transition to 5G, and now it's overhauling its go-to-market strategy. As Will Healy noted on this site, the company reportedly is losing Telecom Italia, with that customer going with Huawei and Ericsson.From a broad standpoint, there's another question. If Nokia can't drive growth now, when can it? Huawei has been hampered, if not crippled, by security concerns. There's really no other competitor besides Ericsson. And yet Nokia isn't expecting much in the way of growth, even if guidance is met this time around. Cheap Isn't Enough for Nokia StockTo be sure, NOK stock is cheap. The midpoint of updated 2020 EPS guidance, €0.25, translates to $0.277. That, in turn, suggests just a 12x forward multiple.And so, again, there's an aspect of Nokia stock that is tempting. The dividend has been cut to fund 5G investments, but management expects the payout to return at some point. 5G growth should continue. Huawei's competitive positioning is at long-term risk.But that's not enough -- and it's not as if other networking plays don't have bull cases themselves. Industry leader Cisco Systems (NASDAQ:CSCO) has sold off. Arista Networks (NYSE:ANET) plunged after earnings, and has its own "buy the dip" case. Juniper Networks (NYSE:JNPR) has shown long-awaited signs of life. Investors willing to step in to the sector have options beyond NOK stock.The biggest issue here, however, is company-specific. Yes, Nokia has an opportunity for growth. But it also has a stock price at a six-year low because it hasn't capitalized on past opportunities. It's exceedingly difficult coming out of the Q3 release to believe that this time is different.That's why the NOK stock price fell 24% after earnings. It's why it's kept falling. Investors don't trust Nokia, or Nokia stock. It's difficult to blame them.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post If You Own Nokia Stock, Prepare for More of the Same Disappointments appeared first on InvestorPlace.
While Intelsat (I) shares tank on the news of probable public auctioning of C-Band spectrum, Vodafone (VOD) is gearing up to shift its data to Google Cloud.