the stock traded higher Thursday after the communications infrastructure company posted better than expected second quarter results and raised the outlook for the full year.
The company had previously said it plans to improve its guidance. The strong results follow a better-than-expected performance in the first quarter.
Nokia stock (ticker: NOK) rose 5.3% to $6.12 on Thursday.
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 movements. The Street consensus was €5.16 billion. Gross margin on an adjusted basis increased to 42.3% from 39.6% a year earlier, while operating margin on the same basis was 12.8%, an increase of 8.3%. Adjusted earnings per share were 9 cents, up 6 cents a year ago and above the Street consensus of 4 cents. According to standard accounting principles, Nokia earned 6 euro cents per share, compared to 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 from €21.7 billion to €22.7 billion, up from an earlier forecast of €20.6 billion to €21.8 billion. The street consensus was €21.5 billion. The company now sees its full-year adjusted operating margin in the range of 10% to 12%, up from a previous forecast of 7% to 10%.
“We executed our strategy faster than planned in the first half, which gives us a good foundation for the full year,” said Nokia CEO Pekka Lundmark.
He also noted that the company continues to expect some headwinds in the second half, with market share loss and price erosion in North America. He added that the company continues to accelerate R&D investments and noted that Nokia is monitoring component availability given strong demand for products.
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