Ericsson shares jump on strong Q3, driven by North America growth, one-off gains
) jumped on Tuesday after the Swedish telecom equipment maker posted better-than-expected third quarter results, driven by a strong performance in its networks business, particularly in North America.The company reported a 29% headline beat in its EBITA, although much of this was due to one-off factors, including a settlement in India and higher intellectual property licensing revenues.
North America was the standout performer for Ericsson in Q3, with network sales soaring by 80% year-on-year, supported by recent contract wins, including a major deal with AT&T (NYSE:However, the company’s operations in India showed a sharp decline, with sales down 43% year-on-year in that market.
The stock’s recovery has been driven by improving market conditions in North America and strong cost-control measures, although challenges remain in other regions, particularly in its enterprise segment, where sales have been under pressure. They also noted that while the stock has rebounded sharply this year, risks remain, including the potential for slower telecom spending, delays in the integration of its Vonage acquisition, and ongoing regulatory investigations.
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