Why Ericsson Stock Jumped to Multiyear Highs Today
Shares of Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) soared on Tuesday, while Wall Street suffered. The S 500 (SNPINDEX: ^GSPC) index was down as much as 1.5% shortly after the opening bell, but the Swedish telecom equipment giant had gained 20.6% by 1 p.m. ET.
Ericsson kicked off the last earnings season of this calendar year with an analyst-stumping Q3 report. The underlying stock of this American depositary receipt (ADR) gained 18% on the Stockholm Stock Exchange before that market closed at 11:30 a.m. ET.
Ericsson's Q3 sales fell 9% year over year to 56.2 billion Swedish kronor. On the other hand, diluted earnings nearly tripled from 1.14 to 3.33 kronor per share (and ADR). Swedish newspaper SvD called the report "guldkantad" (gilded), as the results exceeded the average analyst estimates across the board.
Source Fool.com
