US Stock Market Move | Q3 profits exceeded expectations, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B (ERIC.US) rose over 16%.

On Tuesday, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B (ERIC.US) surged over 16%, reaching a three-year high of $9.51. According to reports, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B's Q3 sales revenue dropped from 618 billion Swedish Krona in the same period last year to 562 billion Swedish Krona, with organic sales (excluding non-operational factors such as mergers and divestments) decreasing by 2% year-on-year. Despite a 9% decline in sales revenue in the third quarter, the company's adjusted quarterly profit exceeded analyst expectations, thanks to operational optimization driving a significant increase in gross profit margin. Adjusted operating profit (EBIT) reached 15.5 billion Swedish Krona (approximately 1.62 billion US dollars), higher than the analyst's previous estimate of 14.1 billion Swedish Krona, compared to 7.3 billion Swedish Krona in the same period last year. The adjusted operating profit before interest, tax, depreciation, and amortization (EBITA) for the third quarter was 15.8 billion Swedish Krona (approximately 1.67 billion US dollars), compared to 7.76 billion Swedish Krona in the same period last year. Looking ahead, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B expects organic sales revenue from enterprise business to stabilize in the fourth quarter, with the overall wireless access network (RAN) market remaining stable. As of now, the company's net cash position has increased to 51.9 billion Swedish Krona, providing space for further shareholder returns. (Note: Some of the currency conversions may be slightly off due to fluctuating exchange rates.)