LM Ericcson gains after earnings

|About: LM Ericsson Telephone Com... (ERIC)|By:, SA News Editor

LM Ericsson Telephone (ERIC +4.1%) tracks higher after besting estimates with its Q3 report.

Sales adjusted for comparable units and currency increased by 1% during the quarter, led by a strong performance for the segment networks business in North America.

Operating margin improved to +6.0% vs. -7.4% a year ago.

CEO update: "We continue to invest in our competitive 5G-ready portfolio to enable our customers to efficiently migrate to 5G. Operators around the world plan for launching 5G services, led by North America. The strong customer interest in 5G generates a gradual increase in costs for field trials. We expect the costs to remain on high levels, at least for the coming 12-18 months, and they are included in our 2020 profitability target of at least 10%."

Previously: LM Ericsson Telephone Company reports Q3 results (Oct. 18)

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