Shares of Nokia have gained 56% so far this year.
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Nokia stock was trading higher Thursday after the communications infrastructure company posted better-than-expected second-quarter results and boosted its full-year outlook.
The company had previously said that it planned to boost its guidance. The strong results follow a better-than-expected performance in the first quarter.
Nokia shares (ticker: NOK) on Thursday were up 5.3% to $6.12.
For the quarter, Nokia posted sales of 5.31 billion euros ($6.3 billion), up 4% as reported and 9% higher when adjusted for currency fluctuations. The Street consensus was €5.16 billion. Gross margin on an adjusted basis jumped to 42.3%, from 39.6% a year earlier, while operating margin on the same basis was 12.8%, up from 8.3%. Adjusted earnings per share were 9 euro cents, up from 6 euro cents a year ago and above the Street consensus at 4 euro cents. Under standard accounting principles, Nokia earned 6 euro cents a share, up from 2 euro cents.
The company said it experienced “growth across all business groups, with particular strength in network infrastructure.”
Nokia raised its full-year sales outlook to a range of €21.7 billion to €22.7 billion, up from a previous forecast of €20.6 billion to €21.8 billion. Street consensus had been €21.5 billion. The company now sees full-year adjusted operating margin in the 10% to 12% range, up from a previous forecast of 7% to 10%.
“We have executed faster than planned on our strategy in the first half which provides us with a good foundation for the full year,” Nokia CEO Pekka Lundmark said.
He also noted that the company continues to expect some second-half headwinds, with market share losses and price erosion in North America. He added that the company continues to accelerate R&D investment and noted that Nokia is monitoring component availability given strong product demand.
Write to Eric J. Savitz at [email protected]
