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Ericsson Announces First Share Buyback After Q4 Beat

Repurchases are slated to begin after the Q1 report pending shareholder approval.

Overview

  • The company will repurchase up to SEK 15 billion ($1.7 billion) of shares in its first buyback program.
  • Adjusted Q4 EBIT reached SEK 12.26 billion versus SEK 10.09 billion expected, with net sales of SEK 69.3 billion topping forecasts.
  • The annual dividend rises to SEK 3 per share from SEK 2.85.
  • Shares jumped more than 11% in early Stockholm trading, leading gains on the STOXX 600.
  • Management cited stronger cash generation from cost reductions and the Iconectiv divestment as the enabler.