ERIC Ericsson

By Stephen Nakrosis

The American depositary receipts of Telefon AB L.M. Ericsson are trading higher Tuesday, after the company reported fourth-quarter net profit and sales that beat market expectations.

At 1:25 p.m. ET, the company's ADRs were trading 6.83% higher, at $11.64 each. Volume topped 15.3 million shares, above the stock's 65-day average volume of some 6.4 million.

The company said its fourth-quarter net profit was SEK10.06 billion($1.08 billion) on sales of SEK71.3 billion.

Analysts were expecting net income of SEK6.5 billion on sales of SEK68 billion, according to FactSet.

Borje Ekholm, the company's president and chief executive, said networks sales in the fourth quarter grew organically by 3%, "despite considerably lower volumes in Mainland China."

Also Tuesday, Ericsson said its board would propose raising the company's dividend to SEK2.5 a share from SEK2 a share.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

January 25, 2022 13:55 ET (18:55 GMT)

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