Ericsson beats profit estimates on stronger 5G roll out

Sweden’s Ericsson has reported fourth-quarter core earnings above market estimates.

Ericsson was helped by higher sales of telecom gear as more countries roll out 5G networks.

Ericsson beat Refinitiv’s mean forecast of 10.30 billion as its quarterly adjusted operating earnings rose to 11.9 billion Swedish crowns ($1.28 billion) from 11 billion a year ago.

Total revenue rose 2% to 71.3 billion crowns, beating estimates of 68.33 billion crowns.

However, Sales in mainland China declined by 1.8 billion crowns.

Sales at Ericsson’s networks unit grew by 3% and gross margin rose to 46.4% from 43.5%.

Big Time rival Nokia had been resurging, increasing competition in several markets thereby dragging Ericsson’s revenue.

Ericsson’s revenue also slumped following a ban of Huawei by the Swedish government.

Ericsson has spent more than $7 billion on the purchase of cloud communications firm Vonage and wireless network gear maker Cradlepoint in an effort to broaden its 5G portfolio.