Nokia jumps as the phone-maker beats earnings expectations and lifts outlook
Nokialeapt as much as 7.2% on Thursday on the back of a strong earningsand guidance.
- The stock bounced on the news, climbing as much as 7% before paring some gains.
- The Finnish company attributed its success to mobile product launches and its
Nokia leapt as much as 7.2% on Thursday on the back of a strong earnings call that led the company to boost its outlook for the second half of the year.
Nokia's net profits in the second quarter jumped to €351 million from the €107 million analysts polled by FactSet expected. That number was up considerably from the same time last year, when profits came in at €99 million. Sales rose 4% to €5.3 billion, a bit higher than expectations.
The company upped its outlook for the rest of the year and for several years to come. It now expects to generate €22.7 billion in sales in 2021, up from €21.7 previously.
The stock bounced on the news, opening about 7% up and maintaining some of its gains so far throughout the trading day.
Analysts have been growing somewhat more bullish about the Nokia, which has at times attracted meme-stock attention. Earlier in July, JPMorgan upgraded the company from neutral to overweight. In June, Goldman Sachs issued a similar upgrade.
The Finnish company attributed its success in the quarter to mobile product launches as well as increasing market share in 5G network infrastructure. 5G has become a strategic priority across the world, a trend which has benefitted the likes of Nokia as some western countries eschew Chinese 5G infrastructure.
Nokia was trading at $6.10 as of 11:54 a.m. ET, up 4.96% on the day.
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