Ericsson beats first-quarter core profit estimates, defying virus outbreak

Ericsson posted better than expected quarterly earnings on strong demand for 5G network equipment even as the coronavirus wreaked havoc, lifting the Swedish telecoms company’s shares 5% in early trade.

Though the company also warned of sales weakness ahead, Wednesday’s results emphasised Ericsson’s ability to withstand pandemic-related pressures that have slammed the brakes on other industries globally, with the telecoms sector among the few to experience surging demand as more people work remotely.

“There is near-term uncertainty around sales volumes due to COVID-19 and the macroeconomic situation, but with current visibility we have no reason to change our financial targets for 2020 and 2022,” Chief Executive Borje Ekholm said in a statement.