Ericsson’s Q1 profit rises to $394 mn, expects sales to stabilise soon

Ericsson said on Tuesday it expects sales to stabilise in the second half of 2024 amid signs some customers are looking to spend again, as the telecoms equipment maker beat first-quarter profit forecasts helped by a one-off gain.

The Swedish group pointed to recent contract wins and normalising customer inventory levels in North America.

Its shares were up 6 per cent in early trade, to levels last seen at the start of the month. However, Ericsson also predicted the 5G Radio Access Network (RAN) market would keep falling at least through the end of the year.