Cell phone maker Sony Ericsson reported record earnings for 4Q06, claiming profits more than tripled. Sales of music and camera phones drove the company's beat quarter. Net earnings improved to €447 million from €146 million during the year earlier period; pretax earnings came in at €502 million. Sales rose 64% to €3.78 billion, driven by strong growth in Asian and South American emerging markets, while total units shipments increased 61% to 26 million. Consensus forecasts were for pre-tax profit of €428 million on sales of €3.2 billion.
• Sources: Press Release, MarketWatch, Reuters
• Related commentary: Redback-Ericsson: A Competitive Threat to Juniper and Cisco?, China's Eventual 3G Rollout Could Favor EU Vendors. Conference call transcripts: LM Ericsson Q3 2006 Earnings Call Transcript
• Potentially impacted stocks and ETFs: Ericsson (NASDAQ:ERIC), Sony (NYSE:SNE). Competitors: Motorola (MOT), Nokia (NYSE:NOK). ETFs: Wireless HOLDRS (NYSEARCA:WMH)
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