Why Ericsson Stock Jumped Today
Shares of Ericsson (NASDAQ: ERIC) jumped as much as 12% today after the company reported fourth-quarter earnings results. The network equipment provider has also been experiencing heightened volatility in recent days, driven in part by interest from retail traders on Reddit's WallStreetBets forum.
Revenue in the fourth quarter was 69.6 billion Swedish kronur ($8.3 billion), topping the consensus estimate of 67.9 billion kronur. That resulted in earnings per share of 2.26 kronur ($0.27), also ahead of the 1.82 kronur that analysts were expecting. Gross margin excluding restructuring costs expanded to 40.6% in the fourth quarter, and profitability across all segments improved. Ericsson has been benefiting from wireless carriers upgrading their networks to 5G technology.
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Source Fool.com
