Nokia’s quarterly net sales rose 5% to €5.35 billion.
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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.
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