Ericsson: shares jump after solid earnings report
(CercleFinance.com) - Swedish telecommunications-equipment supplier Ericsson posted a jump in second-quarter net profit, despite the difficult environment.
Net profit rose 40% to 2.6 Swedish kronor for the three months ended 30 June, with the Covid-19 pandemic having a "limited impact" on operating income and cash flow, the group said.
In comparison, the company reported net profit of 1.8 billion kronor a year earlier.
Ericsson's closely watched gross margin rose to 37.6% in the quarter, from 36.6% a year ago, while sales edged up 1% to 55.6 billion kronor, the telecoms gear maker said. Organic sales were flat.
Citing a "strong" 5G portfolio and a "resilient" balance sheet, Ericsson said it remains positive about the longer-term outlook and is maintaining its targets for 2020 and 2022.
Those figures beat analysts' expectations, and the company's share price jumped 8% on Friday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Net profit rose 40% to 2.6 Swedish kronor for the three months ended 30 June, with the Covid-19 pandemic having a "limited impact" on operating income and cash flow, the group said.
In comparison, the company reported net profit of 1.8 billion kronor a year earlier.
Ericsson's closely watched gross margin rose to 37.6% in the quarter, from 36.6% a year ago, while sales edged up 1% to 55.6 billion kronor, the telecoms gear maker said. Organic sales were flat.
Citing a "strong" 5G portfolio and a "resilient" balance sheet, Ericsson said it remains positive about the longer-term outlook and is maintaining its targets for 2020 and 2022.
Those figures beat analysts' expectations, and the company's share price jumped 8% on Friday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.