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Ericsson Reports Strong Q4 Earnings, Proposes 33.33% Dividend Hike

  • Telefonaktiebolaget LM Ericsson's (NASDAQ: ERIC) sales rose by 13% year-on-year in the fourth quarter of FY20 to SEK 69.6 billion. The company’s robust 5G portfolio primarily drove the growth for 2020.
  • Gross margin expanded by 380 basis points to 40.6%.
  • The operating income rose by 80.3% to SEK 11 billion, with a margin expansion by 660 basis points to 15.8%, fueled by aggressive R&D spend.
  • North America, North East Asia, and Europe drove a 20% growth in the Networks revenue.
  • The net income rose by 60% to SEK 7.2 billion, and EPS climbed 70% to SEK 2.26.
  • Free cash flow stood at SEK 12.8 billion.
  • Ericsson board will propose an annual dividend hike of 33.33% for 2020 to SEK 2 per share at the AGM.
  • Price action: Ericsson’s shares are up 8.8% at $12.65 on the last check Friday.

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