Ericsson shares soar more than 8% after surprising results for 2020
Ericsson shares rise more than 8% on the Stockholm Stock Exchange after the company announced its 2020 results which have exceeded all market estimates. The Swedish manufacturer of communications networks and services saw its sales shoot by 21% to 69,000 million Swedish crowns (6.82 billion euros) and increased its turnover by 2% to 234,400 million Swedish crowns (23.15 billion euros).
Ericsson's net profit reached 17,483 million Swedish crowns (1.73 billion euros) last year, which is almost eight times more than in 2019. The company explains that these good results are in thanks to the acceleration of digitization by the pandemic, investment in 5G infrastructure, and the refusal from some countries to work with Huawei.
This year so far, Ericsson has appreciated 9.54% on the stock market, consolidating above 100 Swedish crowns. In 2020, it managed to close with a rise of 19.72%. In 2019, 4.67%. 2018 was a great year, with an increase of 44.70%. In 2017, just 0.65%.
Source: Admiral Markets MetaTrader 5. Ericsson ADR CFD Chart. Data range: from January 16, 2020 to January 29, 2021. Prepared on January 29, 2021 at 12 noon CET. Keep in mind that past returns do not guarantee future returns.
Ericsson is listed on the Nasdaq under the figure of ADR (American Depositary Receipt). Its shares are also skyrocketing in pre-market trading, up more than 10%. In the graph we can see the evolution of the Contract for Difference on Ericsson ADR.
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