Ericsson reported better-than-expected revenue on a big jump in North American sales.
The Sweden-based telcom equipment maker’s overall revenue dropped 7% year-over-year, but was 15% higher in North America.
The news helped send American depositary receipts (ADRs) of Ericsson to their highest level in nearly two years.
American depositary receipts (ADRs)
of Ericsson (
ERIC
) rose to their highest level in almost two years Friday after the telecom equipment manufacturer posted stronger-than-expected sales in North America.
The firm reported second-quarter revenue fell 7% year-over-year to 59.85 billion Swedish kronor ($5.68 billion), although that exceeded estimates. Because of a SEK11.4 billion
impairment charge
, Ericsson had a net loss of SEK11.0 billion, and a loss per share of SEK3.34.
Net sales were up 15% in North America to SEK16.6 billion, although overall sales were dragged down by an 11% drop in networks revenue.
CEO Expects ‘Market Conditions To Remain Challenging This Year’
Chief Executive Officer (CEO
) Börje Ekholm explained that industry investment levels are “unsustainably low.” However, while the company expects “market conditions to remain challenging this year,” sales will get a boost during the second half “from contract deliveries in North America.”
Ericsson ADRs rose 4.2% to $6.66 as of 10:25 a.m. ET Friday and are up almost 6% year-to-date.
