Key Takeaways
- A jump in North American sales helped Ericsson’s third-quarter earnings and revenue beat analysts’ estimates.
- The Swedish telecom said North American sales were up 51% from a year ago on recent contract wins and investments by some large customers.
- The company said it sees the North American market stabilizing.
Ericsson’s (ERIC) U.S.-listed shares surged Tuesday after the communications technology provider reported better-than-expected results on strong sales in North America.
The Swedish telecom posted third-quarter earnings per share (EPS) of 1.14 Swedish krona ($0.11), well above estimates compiled by Visible Alpha. Revenue fell 4% from a year ago to 61.8 billion krona ($5.96 billion), but that was also above forecasts.
Sales in North America Jump 51%
Sales in North America soared 51% to 20.4 billion krona ($1.97 billion), driven higher by network demand. The company said it benefited “strongly from recent contract wins and selective network investments by some large customers.” Sales declined in all other global regions.
CEO Borje Ekholm said Ericsson sees signs “that the overall market is stabilizing with North America, as an early adopter market, returning to growth.” The company has also gotten a boost from its $14 billion contract to upgrade AT&T’s (T) 5G network that it secured late last year.
Ericsson shares were up more than 11% to $8.41 in early trading Tuesday, their highest level in more than two years.
Read the full article here