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For  the second quarter Ericsson (ERIC) reported a 43% positive earnings surprise.

Could the company surprise again tomorrow? Analysts are looking for the company to report third quarter earnings on October 21 of 16 cents a share. That would be a huge improvement of 184.2% from the third quarter of 2019.

But given Ericsson’s momentum during the quarter, I wouldn’t rule out the possibility of a solid beat above estimates driven by global wins with telecom companies for 5G network equipment..

For example, during the third quarter, Ericsson was selected by Groupe ADP, its subsidiary Hub One and Air France, for a private mobile network covering Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports. In Oman, Ericsson was selected by Omantel to support its ongoing 5G Radio Access Network (RAN) deployment. SoftBank picked Ericsson to deliver the cloud-native 5G Core for the latter’s 5G Standalone Network. Bharti Airtel, India’s largest integrated telecom company, renewed its agreement for  pan-India managed network operations. Ericsson and  Deutsche Telekom, the largest telecommunications service provider in Europe by revenue, signed a new deal to deploy a 5G RAN across Germany. Verizon became the first U.S. communications service provider to receive a 5G base station manufactured at Ericsson’s new 5G production factory in Texas. In total Ericsson signed its 100th commercial 5G agreement with telecom operators.

That momentum doesn’t look to have stalled in the opening weeks of the current quarter. The company has announced deals with AT&T, KPN, Proximus and Airtel.

Some/much of Ericsson’s success comes at the expense of Chinese telecom equipment makers ZTE and Huawei that face U.S.-led restrictions on access to key technology components and warnings from the White House about the possibility that gear from these companies could compromise the security of national telecommunications networks.

Shares of Ericsson closed up 1.74% today, October 21, and are now up 4.5% from October 7. The stock is a member of my Jubak Picks Portfolio. The shares are down 5.03% since I added them to this portfolio on August 5, 2020.