Ericsson AB's ERIC, +5.15% third-quarter net profit exceeded estimates by a significant margin as the telecommunications equipment company continued to keep a tight rein on costs while seeing strong demand from operators racing to launch new fifth-generation networks.
Ericsson's quarterly net profit ballooned to 2.75 billion Swedish kronor ($307.7 million) from a loss of SEK3.56 billion as sales rose 8.9% to SEK53.81 billion.
Analysts polled by FactSet had expected a net profit of SEK630 million on sales of SEK50.28 billion.
The gross margin rose to 36.5% from 26.9% while the operating margin grew to 6.0% from a negative margin of 7.4%.
"We continue to invest in our competitive 5G-ready portfolio to enable our customers to efficiently migrate to 5G," said Chief Executive Borje Ekholm. "Strong sales were mainly driven by a continued high activity level primarily in North America."
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