Muffled signal

17 October 2019 By Ed Cropley Follow @edwardcropley

The Swedish telecom equipment maker has raised its 2020 sales targets by 10% to reflect strong demand for the superfast networks. Yet given market leader Huawei’s U.S. problems, that still looks conservative. The perennial underperformer may have turned a corner.

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Ericsson reported forecast-beating quarterly revenue and operating profits on Oct. 17 due to stronger than expected demand for superfast 5G networks.

The Swedish telecom equipment maker said sales for the three months to the end of September were 57.1 billion Swedish crowns, up from 53.8 billion crowns in the same period of 2018. Consensus analyst forecasts compiled by Refinitiv had predicted sales of 56.6 billion crowns.

Adjusted operating profit was 6.5 billion crowns, up from 3.8 billion crowns in the third quarter of 2018, and better than forecasts of 5.2 billion crowns, Ericsson said.

Ericsson also raised its 2020 sales target to 230-240 billion crowns from 210-220 billion crowns due to faster than expected 5G rollout in North America and northeast Asia.

Ericsson shares were up 6% at 89.10 crowns by 0830 GMT on Oct. 17.

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