Yahoo Finance Why Nokia Stock Surged Today
What happened
Shares of Nokia (NYSE: NOK) rose on Thursday after the company reported its second-quarter results. Nokia beat analyst estimates across the board and reiterated its full-year guidance, although it also pointed to a few risks that could threaten its outlook. The stock was up about 10.3% at 3:45 p.m. EDT.
So what
Nokia reported second-quarter revenue of 5.69 billion euros, up 7.2% year over year and 290 million euros above the average analyst estimate. The networks segment, which is responsible for most of Nokia's revenue, showed solid 7% revenue growth from the prior-year period.
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Non-IFRS (adjusted) earnings per share (EPS) came in at 0.05 euros, up from 0.03 euros in the prior-year period and 0.02 euros higher than analysts were expecting. "Nokia delivered a strong second quarter, driven by 5G demand, a competitive end-to-end portfolio and strengthened operational execution," said Nokia CEO Rajeev Suri in prepared remarks.
Now what
Nokia maintained its full-year outlook, calling for non-IFRS EPS between 0.25 euros and 0.29 euros, non-IFRS operating margin between 9% and 12%, and "slightly positive" recurring cash flow.
This guidance depends on Nokia delivering solid second-half results, which is not a guarantee. The company pointed to execution demands, trade-related uncertainty, and challenges in the China market as key risks going forward.
While Nokia has work to do to hit its full-year guidance, a solid second quarter was enough to send the stock soaring.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of Nokia. The Motley Fool has a disclosure policy.
