Telefonaktiebolaget LM Ericsson (ERIC), a company that provides communication infrastructure, services and software solutions to the telecom and other sectors, has surged by 6.33% during the premarket trading session and consequently is trading at $11.59 at the time of the writing. The surge could be attributed to the announcement of quarterly results. On Monday, the stock closed the day at $10.90 after declining 1% during the regular trading session.
Why ERIC Surging?
Hours ago, ERIC has announced the operational results for the fourth quarter of 2021 results. The organic sales of the group grew by 2% during the quarter. Excluding mainland China, the organic sales growth was 5%. The gross margin improved in all segments to 43.5% during the quarter. The network organic sales grew by 3% during the quarter. The reported net income generated by the company was $1.09 million during the quarter, while the diluted EPS was estimated to be $0.32.
The full Year 2021 Results
Alongside the operational results, ERIC also released the highlights for the full year 2021. The organic sales of the company grew by 4% during the year. The gross margin was calculated to be 43.5% (excluding restructuring charges). The reported net income by the company was $2.47 million, while the diluted EPS for the full fiscal year was estimated to be $0.73.
While commenting on the results, Börje Ekholm, President and CEO of ERIC said that the company’s strategy to invest in technology leadership and grow the market share in its core business underpinned a robust financial performance in 2021 and ensured a good Q4 for it as well. Based on the current business momentum, the company expects fundamentals to remain strong in our core mobile infrastructure business during 2022.
Future Outlook for ERIC
Recent stats reveal an optimistic picture of ERIC stock. Looking ahead, analysts have placed a sell signal for the stock for the short term moving average. However, for the long term moving average, there is a buy signal. Hence, the stock should be held at the moment while waiting for further developments.