Ericsson Stock Gains On Higher Q1 Results

(RTTNews) - Shares of LM Ericsson were gaining around 6 percent in Sweden as well as around 7 percent in the pre-market activity on the Nasdaq, after the Swedish telecom major reported Tuesday higher profit and revenues in its first quarter. Meanwhile, organic sales were stable, with strong growth in market area Americas was offset by declines in other market areas.

Börje Ekholm, President and CEO, said, "We sustained solid momentum in Q1, despite a challenging and fast changing macro backdrop, and our results highlight our competitiveness.... Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilize during 2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers."

Ericsson on Monday announced the appointment of Ludvig Landgren as the new Head of Australia and New Zealand, effective from May 1. Landgren succeeds Emilio Romeo, who after nine years, has taken up a regional role as Executive Strategic Advisor focused on South East Asia.

For the past five years, Landgren has led Ericsson's Cloud, Software and Services, and Enterprise unit for South East Asia, Oceania and India.

In its first quarter, Ericsson's net income attributable to owners of the parent climbed to 4.15 billion Swedish kronor from last year's 2.56 billion kronor. Earnings per share grew 61 percent to 1.24 kronor from 0.77 krona a year ago.

Adjusted EBITA, a key earnings metric, climbed 36 percent from last year to 6.93 billion kronor, and adjusted EBITA margin improved to 12.6 percent from 9.6 percent last year.

Adjusted gross margin was 48.5 percent, up from 42.7 percent last year, supported by improvements in all segments with strong operational execution.

The company's revenue for the period rose 3.2 percent to 55.03 billion kronor from 53.33 billion kronor last year. Meanwhile, organic sales were stable.

In the quarter, Networks sales grew 6 percent year-over-year to 35.6 billion kronor. Cloud Software and Services sales were stable, while Enterprise sales declined 1 percent.

Market Area Americas' sales increased 26 percent, with good growth in North America partly offset by lower sales in Latin America.

Meanwhile, Market Area Europe, Middle East and Africa Sales declined 5 percent. Sales in Europe were stable, supported by market share gains and network modernization. Sales declined in the Middle East and in Africa.

In South East Asia, Oceania and India, sales fell 16 percent, and the drop was 6 percent in North East Asia.

In pre-market activity on the Nasdaq, Ericsson shares were trading at $7.94, a growth of 6.6 percent.

In Stockholm, the shares were trading at 78.08 kronor, up 6.1 percent.

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