Telefonaktiebolaget LM Ericsson (publ) swung to a third-quarter profit from a year-ago loss on the back of better-than-expected revenue.
Net income attributable to stockholders of the parent company came in at 2.75 billion Swedish kronor, or 83 öre per share, in the three months to Sept. 30, compared with a net loss of 3.56 billion kronor, or 1.09 kronor per share, in the same period a year ago.
As-reported net sales grew 9% year over year to 53.81 billion kronor from 49.41 billion kronor. The S&P Global Market Intelligence consensus estimate for third-quarter revenue was 50.32 billion kronor.
Sales in the networks segment advanced year over year to 35.93 billion kronor in the third quarter from 31.87 billion kronor. Sales in digital services grew to 8.99 billion kronor from 8.93 billion kronor, while the managed services segment saw sales drop to 6.47 billion kronor from 6.62 billion kronor.
Operating income stood at 3.24 billion kronor, compared with an operating loss of 3.65 billion kronor in the third quarter of 2017.
The communications equipment company said it continues to invest in its 5G-ready portfolio, while maintaining its cost-reduction efforts.
As of Oct. 17, US$1 was equivalent to 8.94 Swedish kronor.