Key Takeaways

U.S.-traded shares of Ericsson ( ERIC ) popped Tuesday after the Swedish telecommunications firm reported first-quarter profit that topped analysts’ expectations on strong North America sales.

The telecom equipment maker posted earnings per share (EPS) of 1.24 Swedish kronor (13 cents), up 61% year-over-year and well above analysts' estimates. Revenue of 55 billion kronor was up 3% from a year earlier and slightly short of projections.

Ericsson shares jumped more than 7% in recent trading Tuesday and are up about 64% over the past 12 months.

Ericsson Reports 20% Rise in North American Sales

The company’s better-than-expected profit came as sales grew 20% in North America, which Ericsson attributed in part to “accelerated network investments” as customers bought more equipment ahead of potential tariffs .

“In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers,” CEO Borje Ekholm said. “We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time.”

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