Nokia Oyj (NYSE:NOK) on Thursday reported second-quarter results that beat analysts’ estimates and also raised its full-year net sales outlook.
The Finnish telecom equipment maker reported second-quarter earnings per share of EUR 0.06 ($0.07 U.S.), compared with EUR 0.02 ($0.02) per share for the prior-year quarter.
Net sales for the April-June quarter grew 4% to EUR 5.31 billion ($6.3 billion) on a year-over-year basis, beating a consensus figure of EUR 5.15 billion ($6.11 billion), according to Refinitiv data.
Previously considered an underdog, Nokia is now seen as being back firmly in the 5G race, having benefited from the cost cuts, including a planned reduction in its workforce, and other positive news surrounding the company in recent months. The company is a Reddit favorite stock.
In March, Nokia said it reached a deal for its 5G technology with AT&T Inc. (NYSE:T) following new partnerships with companies including Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp. (NASDAQ:MSFT)
Nokia is also seen as benefitting from China’s exclusion of the company’s Swedish rival Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from 5G tenders, it was reported in June.
In the same month, Nokia received an upgrade from Goldman Sachs analyst Alexander Duval, who noted that after lagging Ericsson significantly over the past years, Nokia may finally be positioned to exceed expectations and expand its earnings multiple in the coming quarters.
NOK shares surged 38 cents, or 6.6%, to $6.19.