Swedish network provider Ericsson reported earnings this morning, they had been expected to release earnings on Friday but apparently decided the good news just couldn't wait and checked in with revenues of SEK 49.2B. Their earnings of SEK 2.8B included a large SEK 2B restructuring charge, but substantially exceeded the expectations of the market.
In what has to be a boost for morale as earnings season really gets started this week, the company reported that sales were strong in all markets except western Europe. Sales from their network unit were especially strong. The company doesn't provide guidance going forward, and of course made the obligatory cautionary remarks about not getting too excited about their Q3 when thinking about Q4.
In an environment where everyone expects dire warnings, Ericsson didn't sound any alarms at all. Could it be that life in the telecom sector is not that endangered? Well, Ericsson isn't definitive of course, but by the end of this week we should actually know a nlot. By Friday, Infinera, Equinix, AT&T, Level 3, and Juniper will all have reported, giving us a cross-section of the sector to look at.
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