Ericsson beats third-quarter earnings expectations, sees strong North America growth

From CNBC: 2024-10-15 04:52:13

Shares of Ericsson surged nearly 9% after reporting third-quarter core earnings that beat expectations and robust North American growth. The company disclosed adjusted earnings of 7.327 billion Swedish crowns, jumping from 3.9 billion last year. Despite a 4% drop in net sales, North America showed over 50% year-on-year sales growth, hinting at market stabilization.
Ericsson secured a major contract with AT&T to build a new telecom network using ORAN technology, setting it up to cover 70% of the carrier’s U.S. traffic by 2026. CEO Börje Ekholm credits the North American market rebound to consumer internet growth driving 5G demand, offsetting sales slumps in Asia.
The company’s adjusted gross margin soared to 46.3% in Q3, up from 39.2% last year, signaling potential future earnings growth. Despite past layoffs and slowing 5G equipment demand, Ericsson’s financial outlook is positive. The rebound underscores a strategic shift towards market mix, commercial discipline, and cost actions to boost profitability.



Read more at CNBC:: Ericsson shares jump 7% on third-quarter beat, growth in North America