Ericsson shares up jump 25 percent on 1Q report

Jacob Pedersen, an analyst at Sydbank, said the report was very pleasing in relation to the market's forecasts, but said "the question now is whether this is just a one-timer?"

"Are revenues just being pushed around between quarters or is Ericsson able to gain market share?," he asked.

The numbers alone, and without comparing them with analyst expecations, actually showed a "pretty disappointing earnings development compared to the same quarter last year," he said, adding consensus have come down a fair bit since the Ericsson share started its downward tumble last year.

Since the second half of last year, shares in the Stockholm-based company have plunged on the back of a surprise profit warning as well as turmoil in the world's financial markets.

"The big test will be the half-year report," Pedersen said, pointing to fairly downbeat magagement comments given for the coming quarters.

"They indicated that a larger portion of revenues could come from network rollouts rather than from software product upgrades," he said, adding that the margins are greater on the latter.

Ericsson in February announced a cost-cutting plan that would lead to thousands of layoffs worldwide.