Ericsson 1Q Earnings Rise on Continued 5G Traction -- Earnings Review
April 21 2021 - 7:04AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Sweden's Ericsson AB reported first-quarter earnings
Wednesday. Here's what we watched:
EARNINGS: The telecom-equipment maker posted a net profit of
3.19 billion Swedish kronor ($378.2 million) from SEK2.16 billion a
year earlier. This compared with SEK2.87 billion expected in a
consensus provided by FactSet.
REVENUE: Sales edged 0.1% higher to SEK49.78 billion against
SEK52.66 billion expected.
WHAT WE WATCHED:
5G PROGRESS: Networks sales grew organically by 15%, despite a
decline in intellectual property licensing revenues due to ongoing
litigation. Ericsson said the growth reflects continued high
activity levels in all market areas, except in the Middle East and
Africa.
"We continued to grow market share in the quarter with strong
order intake," CEO Borje Ekholm said. "There is strong momentum in
the global 5G demand with lead markets moving forward at high pace,
creating opportunities for us to grow our core business. To that
end we continue to invest in further strengthening our portfolio
and growing our global footprint."
SUPPLY CHAIN: Ericsson said that with proactive and continuous
measures for supply chain resilience, it has to date been able to
manage the global semiconductors shortage situation without impact
on its customer deliveries.
GUIDANCE: The company expects the overall market to develop
favorably during 2021. It said it intends to continue to invest for
market share gains as well as supply chain resilience during the
rest of the year.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 21, 2021 06:49 ET (10:49 GMT)
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