Nokia’s quarterly net sales rose 5% to €5.35 billion.
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Shares of Nokia rose after the Finnish telecom equipment maker overcame supply chain and inflation challenges to report a forecast-beating first quarter, boosted by demand for 5G gear.
Nokia (ticker: NOK) said first-quarter adjusted operating profit was €583 million ($614 million), up from €551 million in the same period the previous year and above the average analyst estimate of €502 million, according to data from FactSet.
Network infrastructure grew 9% in constant currency in the quarter, driven by strong demand in both fixed and submarine networks, the company said.
Quarterly net sales grew 5% to €5.35 billion (5.64 billion) during the first three months of the year. Analysts polled by FactSet had forecast sales of €5.26 billion.
Nokia shares rose about 3% in European trading on Thursday. American depositary receipts of Nokia gained 1.6%. The U.S.-listed shares have fallen 19% year to date.
Nokia kept its guidance for the full year unchanged, saying it expected net sales of €22.9 billion to €24.1 billion on a constant currency basis. Its target for comparable operating margin remains 11% to 13.5%.
Earlier this month, Nokia announced that it would exit Russia following Moscow’s invasion of Ukraine, which would lead to a provision of €104 million in the first quarter. As a result, net profit was €219 million, compared with €263 million for the same period a year earlier.
“The demand environment remains strong and while supply chain and inflation challenges remain, we are confident we can deliver our 2022 outlook,” said Chief Executive Pekka Lundmark.
Write to Lina Saigol at [email protected]
