Ericsson Reports Strong Q4 Earnings, Proposes 33.33% Dividend Hike

by Anusuya Lahiri, Benzinga Staff Writer

January 29, 2021 11:24 AM | 1 min read | Make a Comment

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.