Shares of Ericsson (STO: ERIC) gained as much as 9% to hit fresh record highs after the company reported better-than-expected third-quarter earnings.
Ericsson has continued to benefit from the 5G infrastructure rollout with the number of contracts surging to 112. The Swedish giant posted the third-quarter adjusted operating earnings of 9.0 billion Swedish crowns ($1.0 billion).
This is much higher than 6.5 billion crowns reported a year ago. Surveyed analysts expected a profit of 6.98 billion crowns. Revenue also jumped by 1% to 57.5 billion crowns.
Gross margins also rose, hitting 43.2% from 37.8% a year ago.
“While the pandemic has hurt revenues for several of our customers, and in some cases this has led to a reduction of capex, we have not seen any negative impact on our business, largely due to footprint gains,” Chief Executive Borje Ekholm said in a statement.
“The 5G roll out in China was the big driver in this quarter,” Ericsson CFO Carl Mellander told Reuters. Ericsson won 3 big contracts in China.
Ericsson share price rose 9% to hit 116.4 and exceed the previous all-time high at 114.8 set in July.
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