(Reuters) – Ericsson posted better than expected quarterly earnings on strong demand for 5G network equipment even as the coronavirus wreaked havoc, lifting the Swedish telecoms company’s shares 5% in early trade.
FILE PHOTO: A general view of an exterior of the Ericsson headquarters in Stockholm, Sweden, January 24, 2020. TT News Agency/Fredrik Sandberg via REUTERS/File Photo
Though the company also warned of sales weakness ahead, Wednesday’s results emphasized Ericsson’s ability to withstand pandemic-related pressures that have slammed the brakes on other industries globally, with the telecoms sector among the few to experience surging demand as more people work remotely.
“There is near-term uncertainty around sales volumes due to COVID-19 and the macroeconomic situation, but with current visibility we have no reason to change our financial targets for 2020 and 2022,” Chief Executive Borje Ekholm said in a statement.
Sequential sales growth in the second quarter will be…
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