Ericsson Gets a Lift From North American Demand

Core Insights - Ericsson reported a 7% year-over-year decline in overall revenue, totaling 59.85 billion Swedish kronor ($5.68 billion), but North American sales increased by 15% to SEK16.6 billion [1][3] - The company's American depositary receipts (ADRs) reached their highest level in nearly two years following the positive sales report [1] - Despite the revenue drop, the company incurred a net loss of SEK11.0 billion due to a SEK11.4 billion impairment charge, resulting in a loss per share of SEK3.34 [1] Company Performance - The overall revenue decline was primarily attributed to an 11% drop in networks revenue [1] - CEO Börje Ekholm indicated that industry investment levels are "unsustainably low" and expects challenging market conditions to persist throughout the year [3] - The company anticipates a sales boost in the second half of the year from contract deliveries in North America [3] Market Reaction - Following the earnings report, Ericsson's ADRs rose by 4.2% to $6.66, marking an increase of almost 6% year-to-date [3]