Ericsson Earnings: ERIC Stock Soars 13% on Q2 Results

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Ericsson (NASDAQ:ERIC) earnings for the telecommunications company’s second quarter of 2020 have ERIC stock soaring on Friday. This comes after reporting diluted earnings per share of 74 cents, which is better than Wall Street’s estimate of 63 cents. Its revenue of 55.6 billion kr also beats out analysts’ estimates of 50.18 billion kr.

Ericsson Earnings: ERIC Stock Soars 13% on Q2 Results

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Here are some additional highlights from the most recent Ericsson earnings report.

  • Diluted per-share earnings are up 45% from 51 cents during the second quarter of 2019.
  • Revenue for the quarter comes in 1% higher than the 54.8 billion reported in Q2 2019.
  • Operating income of 3.9 billion kr is a 3% increase year-over-year from 3.7 billion kr.
  • The Ericsson earnings report also includes a net income of 2.6 billion kr.
  • That’s a 40% jump over its net income of 1.8 billion kr from the same period of the year prior.

Börje Ekholm, president and CEO of Ericsson, said this about the current Q2 earnings results.

“Despite the difficult environment we delivered a solid result. Q2 organic[1] sales were flat and gross margin[2] improved to 38.2% (36.7%) YoY, including negative effects from strategic contracts.”

Ericsson says that it plans to continue with its long-term outlooks for 2020 and 2022. The company notes that it is seeing accelerating investments from some customers while others are remaining more cautious.

ERIC stock was up 13.2% at the end of normal trading hours on Friday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/ericsson-earnings-q2-push-stock-higher/.

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