Benzinga | Jan 25, 2022 05:26AM EST

Ericsson Clocks 3% Sales Growth In Q4; Proposes Dividend Hike Of 25%

* Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) reported a fourth-quarter FY21 sales growth of 3% year-on-year to SEK71.3 billion. Group organic sales grew by 2% Y/Y.

* Organic sales in Networks rose 3% Y/Y, and Digital Services sales were flat Y/Y.

* It reported an EPS of SEK 3.02 versus SEK 2.26 last year.

* The adjusted gross margin expanded 290 basis points to 43.5%. The adjusted EBIT margin improved by 140 bps to 13.9%.

* The board will propose a dividend for 2021 to the AGM of SEK 2.50 per share, up 25% Y/Y.

* Looking ahead, the company expects fundamentals to remain strong in its core mobile infrastructure business during 2022.

* Price action: ERIC shares traded higher by 6.33% at $11.59 in the premarket session on the last check Tuesday.