Ericsson ERICB SS has rebounded strongly today, rallying by +16.50% on substantially improved earnings and sales :

Brokers Jeffries has this to say on the name :

Ericsson (ERICB SS, HOLD, PT: SEK80.00) First View: Healthy gross margin progression in Networks:

Ericsson has reported sales of SEK56.2bn, down 2% QoQ on an organic basis and 9% YoY on a reported basis. N. American Network sales declined as the AT&T contract deliveries were in their 5th quarter. Latam was also weak amidst intense competition from Chinese vendors. However, the adj. gross margin was above expectations at 48.1%, led by Networks at 50%.

Weak sales in India and higher sales in Japan may have contributed. Gross margin was also healthy in the Enterprise (51.6%) and Cloud Software & Services (42.1%) divisions. EBIT and EBITA margins benefited from the stronger gross margin and the inclusion of an SEK7.6bn gain from the sale of iconectiv.

Ericsson is guiding its Q4 Networks gross margin to a 49-51% range, higher than our 49% at the mid-point. It also expects Enterprise sales to stabilise from Q4-25. The board is likely to increase distributions following the iconectiv sale and healthy cash flow. We regard the strengthening gross margin trend across divisions as positive.