Sweden’s Ericsson has reported stronger-than-expected quarterly profits, sending its shares up 13% — their biggest one-day surge in over six years. The telecom equipment maker posted 15.4 billion Swedish crowns ($1.62 billion) in adjusted EBIT for the third quarter, up 9.2% from forecasts of 14.1 billion, driven by cost savings and a robust foothold in North America.
Despite a 9% year-on-year drop in sales to 56.2 billion crowns, Ericsson outperformed analysts’ expectations and maintained its lead in the 5G market, supported by a $14 billion contract with AT&T. Finance chief Lars Sandström said in a Reuters interview that the company does not expect tariffs to pose a major problem, noting: “No company is immune, but so far, we see no further impact.”
Sales in the Americas fell 8% from last year’s high base, while Ericsson continues to expand through new partnerships, including a five-year agreement with Vodafone to upgrade network infrastructure. The firm also finalized the sale of its Iconectiv business, adding a 7.6 billion crown profit boost, which may support dividends or a share buyback plan.
