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Traders said investors were focusing on the company’s operational results, which were in line with market expectations.
JPMorgan pointed to a significant outperformance of Ericcson’s historically loss-making cloud software and services business, which turned to a surprise core profit in the third quarter.
“The earnings reported seems to indicate that the business is likely turning around due to the restructuring,” it said.
Ericsson (BS:ERICAs) reported a preliminary third-quarter operating profit before amortisation, restructuring and impairment charges of 4.7 billion Swedish crowns ($431 million), down 39%.
The group, which announced in February plans to cut 8,500 jobs to reduce costs, said it expected an operating margin of 7.3% before amortisation and restructuring charges in line with previous guidance.
Ericsson shares were little changed by 0733 GMT, having traded between a rise of 2.2% and a fall of 2.4% on the day. The stock has lost around 13% in 2023.
($1 = 10.9010 Swedish crowns)
