Stocks of Ericsson soar as North American sales increase amid tariff worries

Takeaways

• Ericsson shares soared Tuesday after the firm reported a first quarter profit that exceeded analysts’ expectations.
• The Swedish company stated that North American sales rose due to “accelerated investment in network” amid uncertainty over tariffs.
• "We are not immune, but we are resilient," Ericsson CEO Borje Ekholm said Tuesday when the earnings were released.

U.S.-traded Ericsson shares (ERIC) rose Tuesday after the Swedish telecoms firm reported a first-quarter profit which exceeded analysts’ expectations due to strong North America sales.

The telecom equipment manufacturer posted earnings per share of 1.24 Swedish Kronor (13 Cents), a 61% increase year-over-year. This was well above analyst estimates. Revenue of 55 billion kronors, up 3% over a previous year and slightly short of expectations, was up by 3%. 

Ericsson shares have risen more than 7% during recent trading on Tuesday, and are up approximately 64% in the last 12 months. 

Ericsson reports a 20% increase in North American sales

Ericsson said that the company’s better than expected profit was due to sales growth of 20% in North America. Ericsson attributed this to “accelerated network investment” as customers bought equipment ahead of potential tariffs. 

“In an evolving global trading landscape and macro-volatility, we continue focusing on controlling what is within our control and delivering products to our customers,” CEO BorjeEkholm said. “We are not invincible, but we are resilient. We have a well-diversified production close to our customers and the flexibility to adjust to changing conditions over the years.”