Finnish telecom network equipment maker Nokia, said to the report that the first quarter revenue and profit are higher than the expected rate. The sales of 5G equipment has helped much in this growth rate.
The quarterly revenue has rose 3%. A consensus figure of 4.72 billion, has been beaten by a 5.08 billion euros ($6.16 billion). Chief Executive Pekka Lundmark, said that in 2021, they expect their typical quarterly earnings seasonality to be less pronounced. He also added that their sales growth was strong across its network infrastructure business.
Lundmark took over the top job last year. He streamlined the company’s operation, cut jobs, and made changes to recover from product missteps. He thus corrected the company’s previous management’s mistakes that had hurt the 5G ambitions and weighed on its shares.
As more telecom operators start rolling out 5G networks, Nokia and its Nordic rival Ericsson have been gaining more customers. And another reason is that several governments for security concern has shunned increasingly the China’s Huawei. Nokia forecast full year net sales of between 20.6 billion euros to 21.8 billion euros, largely in line with expectations of 21.28 billion euros. Quarterly profit and adjusted profits are 5 and 7 euros per share respectively.
Comparable gross margin rose to 38.2% from 36.4%, of last year rate. 5G growth has mainly driven this comparable gross margin. Rival Ericsson last week reported quarterly core earnings above market estimates, helped by higher margins and 5G rollout in China.
