Swedish telecommunications equipment manufacturer Ericsson reported a 4% year-over-year decline in third-quarter revenue, amounting to 61.8 billion Swedish kronor. Despite the revenue drop, the company outperformed market expectations. Adjusted earnings before interest and taxes (EBIT), excluding impairments, soared by 88% to 7.3 billion Swedish kronor, surpassing analysts' forecasts of 5.6 billion Swedish kronor.
This earnings surge was largely attributed to a rebound in demand for 5G equipment in North America. Ericsson's CEO, Borje Ekholm, noted that the company's third-quarter performance demonstrated business progress, highlighted by significant margin expansion and increased free cash flow.
Looking ahead, Ericsson anticipates stable year-over-year network sales in the fourth quarter, driven mainly by the North American market. However, the company expects sales pressure in the enterprise segment over the short term.
