February 22nd, 2021

Fourth-quarter revenue beat expectations

STOCKHOLM (Reuters) - Ericsson beat fourth-quarter core earnings forecasts on Friday, helped by strong sales of 5G equipment and the ban on Chinese rival Huawei in several countries. Not only is Ericsson is selling more, but it is also earning more from each sale, with gross margins rising to 40.6% in the quarter from 36.8% a year earlier. Margins are now at levels of a decade ago, having recovered from the low-20%s in 2017.

In particular, the core Networks business saw margins at 43.5% from 41.1% a year earlier, on a 20% rise in sales. The company said its operating margin of 12.5% in 2020 reached the 2022 group target range of 12-14% two years early.

Finnish telecom network equipment maker Nokia on Thursday reported
better-than-expected fourth-quarter revenue amid a strategy revamp from new CEO Pekka Lundmark. Nokia said its October-December revenue fell 5% to 6.57 billion euros, beating a consensus figure of 6.42 billion, Refinitiv Eikon data showed. (Reporting by Tarmo Virki in Helsinki and Supantha Mukherjee in Stockholm; Editing by Tom Hogue)

Вполне предсказуемо созданные Штатами проблемы для китайских компаний приводят к увеличению доходов и маржи немногих - всего то два, по сути, - оставшихся конкурентов.