Nokia ups networks profit guidance; shares soar
Slimmed-down technology firm Nokia on Thursday upped its full-year profit guidance at its core Networks unit, saying it expected 2014 underlying profitability for the business to be at or slightly above its long term target range of 5 to 10 percent.
Revenue came in at 2.9 billion euros ($3.9 billion) for the period, against analyst estimates of 2.91 billion euros in a poll by Dow Jones news agency. Operating profit managed to beat market expectations with a figure of 284 million euros, above a Dow Jones prediction of 233 million euros. Shares opened nearly 8 percent higher on Thursday morning.
The latest earnings follow a period of serious upheaval at Finnish telecoms equipment maker. U.S. technology giant Microsoft completed its acquisition of Nokia's devices and services business in April. The two companies had forged a partnership to produce several well-received smartphones in recent years but Nokia had struggled with market share over the past few years, with the emergence of Apple and Samsung.
Nokia promoted Rajeev Suri to CEO back in April. Thursday's report is the first earnings release since the Microsoft deal and the first with Suri in command.
Suri said in Thursday's earnings release that Nokia's performance in the quarter showed the current strength of the company.
"This performance, along with the many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future," he said.
Nokia is now eying a return to year-on-year growth for its Networks unit and signaled more investment ahead for its smaller HERE division, which creates mapping technology. Suri also praised the Nokia Technologies unit which delivered an increase in net sales.
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