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.Adjusted earnings before interest and taxes were 7.

Ericsson on Tuesday declared adjusted third-quarter earnings, excluding impairments, of 7.327 billion Swedish crowns ($0.7 billion), surpassing the 5.75 billion crown mean forecast of analysts cited by Reuters.

Ericsson shares rallied on Tuesday as the Swedish telecom equipment maker said the market is stabilizing as North America returns to growth.