Ericsson Sales Exceed Estimates in Relief for New CEO Ekholm
- Ekholm asks for patience as Ericsson outlines new strategy
- Revenue drops 11%; dividend cut for first time in 8 years
Ericsson CEO: Balance Sheet Must Allow Investments
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Ericsson AB reported higher fourth-quarter revenue than analysts predicted, offering some relief to new Chief Executive Officer Borje Ekholm as he tries to stabilize the Swedish wireless network maker.
The stock jumped as much as 7 percent after Ericsson said revenue fell 11 percent to 65.2 billion kronor ($7.4 billion). Analysts predicted sales of 59.2 billion kronor on average. Adjusted operating profit of 4.4 billion kronor topped the average estimate of 3.35 billion kronor.