Nokia Stock Is Jumping Because Earnings Were Strong

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July 29, 2021 11:05 americium ET

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Shares of Nokia person gained 56% truthful acold this year.

JOSEP LAGO/AFP via Getty Images

Nokia banal was trading higher Thursday aft the communications infrastructure institution posted better-than-expected second-quarter results and boosted its full-year outlook.

The institution had previously said that it planned to boost its guidance. The beardown results travel a better-than-expected show in the archetypal quarter.

Nokia shares (ticker: NOK) connected Thursday were up 5.3% to $6.12.

For the quarter, Nokia posted income of 5.31 cardinal euros ($6.3 billion), up 4% arsenic reported and 9% higher erstwhile adjusted for currency fluctuations. The Street statement was €5.16 billion. Gross borderline connected an adjusted ground jumped to 42.3%, from 39.6% a twelvemonth earlier, portion operating borderline connected the aforesaid ground was 12.8%, up from 8.3%. Adjusted net per stock were 9 euro cents, up from 6 euro cents a twelvemonth agone and supra the Street statement astatine 4 euro cents. Under modular accounting principles, Nokia earned 6 euro cents a share, up from 2 euro cents.

The institution said it experienced “growth crossed each concern groups, with peculiar spot successful web infrastructure.”

Nokia raised its full-year income outlook to a scope of €21.7 cardinal to €22.7 billion, up from a erstwhile forecast of €20.6 cardinal to €21.8 billion. Street statement had been €21.5 billion. The institution present sees full-year adjusted operating borderline successful the 10% to 12% range, up from a erstwhile forecast of 7% to 10%.

“We person executed faster than planned connected our strategy successful the archetypal fractional which provides america with a bully instauration for the afloat year,” Nokia CEO Pekka Lundmark said.

He besides noted that the institution continues to expect immoderate second-half headwinds, with marketplace stock losses and terms erosion successful North America. He added that the institution continues to accelerate R&D concern and noted that Nokia is monitoring constituent availability fixed beardown merchandise demand.

Write to Eric J. Savitz astatine eric.savitz@barrons.com

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