Ericsson profit off 28%, but sales rise

Ericsson announced its third quarter earnings Monday, and despite a drop in net profits, its stock soared on better-than-expected news.

Despite a 28 percent drop in net income to $384 million, down from $523.6 million last time, the Swedish vendor saw its stock rise 16 percent in trading in Stockholm because it beat the forecast of a net profit of $291 million.

Sales for the No. 1 infrastructure vendor rose 13 percent to $6.5 billion, up from $5.8 billion in the same quarter last year. Sales rose in every region except for Western Europe, where they declined 6 percent, due to weaker demand from Italy, Spain and the U.K., Ericsson said.

"Our business in the quarter has not been impacted by the financial turmoil," said Ericsson CEO Carl-Henric Svanberg in a statement. "Our customers are generally financially strong. In addition, networks are loaded and traffic shows strong increase."

For more:
-see this full earnings release
-see these articles

Related Articles:
Ericsson profit drops 70%, but N.A. sales up
Ericsson-Redback targets carrier Ethernet

Suggested Articles

The California Public Utilities Commission (CPUC) told T-Mobile and Sprint that they can't begin the merger of California operations just yet.

That’s a push back from the mid-April reopen target Apple appeared hopeful for just last week.

MTN Consulting says the industry consensus is that 5G will double to triple energy consumption for mobile operators, once networks scale.