Ericsson cites ‘solid’ demand as operating profit beats forecasts
Operating profit was down 36% year-on-year to SEK10.1 billion, significantly higher than Bloomberg's analyst consensus of SEK7.93 billion.
Ericsson, the leading Swedish telecommunications company, reported a 49% drop in net profit for the third quarter, with operating profit surpassing analyst forecasts due to robust customer demand in key markets. The company attributed the decline to soaring semiconductor prices and geopolitical risks, which are expected to negatively impact gross margins in the upcoming year.
Despite the challenges, Ericsson remains committed to optimizing its portfolio, pricing strategies, and operational efficiency. The company's adjusted EBITA, or operating profit, fell by 36% to SEK10.1 billion, slightly below analyst expectations. However, sales increased by 6% to SEK59.5 billion, with organic sales growing by 7% driven by expansion in various regions such as Northeast Asia, Southeast Asia, Oceania, India, Europe, the Middle East, and Africa.
CEO Per Narvinger expressed confidence in Ericsson's ability to meet customer demand for more intelligent and autonomous networks to enhance network performance, efficiency, robustness, and resilience.
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- Ericsson cites ‘solid’ demand as operating profit beats forecasts freemalaysiatoday.com
