Nokia: shares jump after stronger-than-expected results
(CercleFinance.com) - Nokia said that it has swung to a profit in the second quarter, despite the Finnish telecom gear maker's lower sales stemming from the Covid-19 crisis and difficulties in China.
The company said its operating profit (non-IFRS) was 170 million euros in the past quarter, from a loss of 57 million euros in the second quarter of 2019.
Sales dropped 11% from a year ago to 5.1 billion euros, with most of the decline due to the corona pandemic and the "prudent approach" that the group has taken towards deal-making in the Chinese market.
Nokia said that fierce competition in China had a "particularly negative impact" on its network unit.
However, "Nokia delivered a strong improvement in the second quarter, with better-than-expected profitability," said CEO Rajeev Suri.
As a result, the company has raised the midpoint of its FY 2020 non-IFRS EPS guidance, now targeting 0.25 euro plus or minus 5 cents.
Investors seemed to be delighted with the report, and the Nokia shares jumped over 12% on Euronext Paris on Friday morning.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The company said its operating profit (non-IFRS) was 170 million euros in the past quarter, from a loss of 57 million euros in the second quarter of 2019.
Sales dropped 11% from a year ago to 5.1 billion euros, with most of the decline due to the corona pandemic and the "prudent approach" that the group has taken towards deal-making in the Chinese market.
Nokia said that fierce competition in China had a "particularly negative impact" on its network unit.
However, "Nokia delivered a strong improvement in the second quarter, with better-than-expected profitability," said CEO Rajeev Suri.
As a result, the company has raised the midpoint of its FY 2020 non-IFRS EPS guidance, now targeting 0.25 euro plus or minus 5 cents.
Investors seemed to be delighted with the report, and the Nokia shares jumped over 12% on Euronext Paris on Friday morning.
Copyright (c) 2020 CercleFinance.com. All rights reserved.