The Swedish telecommunications-equipment company said sales in its key networks unit fell 4% in the third quarter, as an 80% rise in North America was offset by a sharp decline across Southeast Asia,

Ericsson AB shares rose to their highest in two years after the telecom equipment company’s deal with AT&T Inc. helped push third-quarter earnings above analysts’ estimates.

Sweden's Ericsson on Tuesday said the telecom equipment market is showing signs of improvement after reporting core earnings and sales above expectations, helped by a rebound in demand for 5G gear in North America.