Ericsson earnings miss estimates as costs dent margins

Swedish telecom equipment maker Ericsson (SE.ERICB) on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and logistics costs. The company's quarterly adjusted operating earnings fell to 7.1 billion Swedish crowns ($633.05 million) from 8.8 billion crowns a year earlier, missing analysts' mean forecast of 8.73 billion, according to Refinitiv data.

Ericsson's quarterly revenue, however, rose to 68 billion crowns from 56.3 billion a year earlier, beating analysts' average estimate of 66.25 billion. Gross margin fell to 41.4% from 44.0% as it was also hit by lower royalty revenue due to ongoing patent disputes.