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Mobile telecom equipment maker Ericsson reported stronger-than-expected third-quarter sales figures Thursday, boosted primarily by high activity levels in North America.
In posting its third consecutive quarter of progress toward reaching its 2020 financial targets, the company saw its net sales jump by 9 percent year-on-year and 8 percent since the last quarter.
“We continue to execute on our focused strategy, tracking well towards our 2020 targets,” Borje Ekholm, president and CEO of Ericsson, said in a statement.
The mobile telecom provider posted an operating profit of 3.2 billion crowns ($356.5 million) as compared to a loss of 3.7 billion crowns in the third quarter of 2017.
“There is strong momentum in the global 5G market with lead markets moving forward … More work remains, however, to get all parts of the business to a satisfactory performance level. We remain confident in reaching our long-term target of at least 12 percent operating margin beyond 2020.”
Ericsson’s shares have soared more than 30 percent year-to-date, underpinned by progress toward meeting its 2020 financial targets and hopes for a 5G-led industry growth cycle.
The Swedish mobile telecom gear maker appears to be benefitting from rising competition among the four top U.S. carriers, which are all desperately trying to be the first to deliver 5G in dozens of American cities.
5G has become somewhat of a litmus test for technology leadership in America’s intensifying stand-off with China over trade and national security.
Ericsson — which was once one of the world’s biggest suppliers of mobile communications gear — is facing a number of headwinds at present, including falling spending among telecom operators and stiff competition from the likes of Huawei and Nokia.