Ericsson (ERIC) Hits New High on Stellar Earnings

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is one of the best performers on Tuesday.

Ericsson surged to a new all-time high on Tuesday, after reporting a strong earnings performance in the third quarter of the year.

In intra-day trading, Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) climbed to its highest 52-week price of $9.87 before slightly paring gains to end the day up by 20.56 percent at $9.85 apiece.

This followed the company’s 191-percent jump in net income in the third quarter of the year at SEK 11.3 billion from SEK 3.9 billion in the same period last year, despite net sales dropping by 9 percent to SEK 56.2 billion from SEK 61.8 billion year-on-year.

Net sales were dragged by a 20 percent decline in enterprise sales, impacted by the divestment of iconectiv during the quarter, as well as 2 percent drop in organic sales, amid weak sales in India.

”In Q3, we established margins at a new long-term level following strong operational execution over the past few years…Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed that our 5G solutions are industry-leading. Our Open RAN-ready portfolio includes an AI native, future-proof software architecture that is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs,” said Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) President and CEO Borje Ekholm.

“Looking ahead, we expect Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable,” he added.

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Disclosure: None. This article is originally published at Insider Monkey.