Ericsson Stock Surges on Profit Beat and Mega 5G Deals – What Investors Need to Know
Solid Q3 Results and Margin Expansion Ericsson’s third-quarter report (Oct. 14) painted a picture of profitable execution despite a modest sales decline. Net sales eased 9% year-on-year to SEK 56.2 billion (–1% organic), but gross margins surged to ~48% (adjusted) thanks to efficiency gains ericsson.com. Management cited “operational excellence” and cost cuts for this improvement. Importantly, adjusted EBITA leapt to SEK 15.5 billion, nearly 150% above last year, yielding a 28.1% EBITA margin ericsson.com. This was bolstered by the August divestiture of iconectiv (a numbering-plan subsidiary), which generated a one-time capital gain of SEK 7.6 billion ericsson.com. Including that gain, reported net income was SEK 11.3 billion (SEK 3.33 per