Ericsson Beats Profit Forecast but Flags Margin Pressure Ahead
The Swedish telecom equipment maker exceeded analyst estimates in the third quarter, while rising component costs threaten margins next year.
Key takeaways
- Operating profit before amortisation and restructuring costs was 10.1 billion crowns, above the 7.87 billion forecast.
- Ericsson said component costs would weigh on margins next year.
Ericsson reported third-quarter operating profit before amortisation and restructuring costs of 10.1 billion crowns, above the 7.87 billion analyst forecast. The result was down from 15.8 billion crowns a year earlier.
Organic sales rose 7% to 59.5 billion crowns, beating the 55.4 billion forecast. The company said North American sales increased slightly, supported by project phasing.
Ericsson said component costs rose during the quarter and warned they would pressure margins next year. Shares traded at 104.65 Swedish kronor, up 7.78% from the previous close, as of 08:25 UTC on Thursday.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
