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Ericsson Profit Margin Falls Short as Rivals Weigh on Sales

Ericsson AB, the largest maker of wireless-network equipment, reported a profit margin that missed analysts’ estimates as competition intensified and carriers slowed investments. The stock slumped.

Third-quarter gross margin, a key measure of profitability, was 32 percent, Stockholm-based Ericsson said today. Analysts predicted 33.4 percent, the average of estimates compiled by Bloomberg. Sales fell 2.9 percent to 53 billion kronor ($8.3 billion), trailing the average projection of 54.3 billion kronor, and were also hurt by currency swings.