Ericsson (NASDAQ:ERIC) stock rose Friday after the Swedish telecom giant reported stronger-than-expected fourth-quarter earnings.
Ericsson, which generates the bulk of its revenue from network infrastructure, software solutions, and professional services, reported EPS of 27 cents, beating the analyst consensus estimate of 23 cents.
The company’s reported sales for the quarter were 69.3 billion Swedish Krona ($7.37 billion).
Although this represented a 5% year-over-year (Y/Y) decline, it topped the consensus revenue estimate of $7.03 billion.
Organic sales, which exclude the impact of acquisitions, divestments, and foreign currency fluctuations, rose 6% for the period.
The Networks division, a core business for the company, saw sales fall by 6%.
The Enterprise segment experienced a steep 25% decline, primarily due to the divestment of iconectiv during the third quarter.
However, this decline was partially offset by a 3% growth in Cloud Software and Services sales.
Within the Networks segment specifically, organic sales decreased by 4%, as sales growth in Europe, the Middle East, and …