Ericsson second-quarter earnings beat expectations, but gross margin guidance will likely weigh on the stock, J.P. Morgan analysts write. Ericsson beat consensus Ebitda by 3.1% despite a sales miss, on better gross margins in networks and cloud software. However, the company guides for a gross margin of 49% at midpoint in networks, below consensus 49.7%. Third-quarter earnings likely mid single-digit percentage below consensus. Shares fall 6.9%.

Bernstein analyst Ulrich Rathe writes the quarter was saved by cost cutting but outlook appears uninspiring. Ericsson missed consensus on revenue and gross profit but beat adjusted Ebita on efficiency measures. Networks unit was soft across the board, with gross margin guided down about 1 percentage point for Q3. Bernstein rates Ericsson underperform with 73 Swedish kronor price target; shares closed at 112.75 kronor.

CJ ENM could be hit by Korea's shrinking broadcasting market, CGS International's Joshua Kim says. Broadcasting market revenue has contracted for three straight years through 2025, with advertising revenue CAGR declining 13% over 2022-2025. The brokerage cuts 2026 and 2027 EPS forecasts by 46% and 30%, lowers rating to hold from add, and target price to 34,000 won from 78,000 won. Shares last closed at 30,150 won.