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Rajeev Suri
Anjali Sundaram | CNBC
The Finnish manufacturer of telecommunications network equipment Nokia announced Thursday a surprise rise in its profits in the second quarter, citing increased demand, while maintaining its earnings outlook for 2019.
Nokia has announced an underlying earnings per share from April to June of 0.05 euro, compared with an average forecast of 0.03 euro in a Refinitiv poll.
The company said its revenue in the second quarter was up 7% over the previous year, to 5.69 billion euros ($ 6.34 billion), thanks to growth in America North.
The quarterly builder 's sales figure exceeded the average forecast of 5.43 billion euros badysts.
The telecommunications network sector is facing a slowdown in demand since 4G sales peaked in the middle of the decade, but a new cycle of network upgrades appears to be taking place as demand for technology has increased. 5G increases.
Nokia has maintained its annual earnings per share guidance at 0.25-0.29 euros and a 2020 EPS of 0.37-0.42 euros. Analysts' average forecasts are set at € 0.23 for 2019 and € 0.36 for 2020, according to Refinitiv data.
The Finnish company said it expects now to a slight market growth in 2019, while its previous forecasts were based on a flat market.
Nokia considers Swedish Ericsson and Chinese Huawei as its main rivals. According to some badysts, the Nordic companies could take advantage of the difficulties faced by the Chinese group after Washington has accused Huawei of activities contrary to national security, which denies Huawei.
"Some customers are rebadessing their suppliers in the light of security concerns, creating pressure to invest in the short term to secure their long-term profits," Nokia said.
Last week, his rival, Ericsson, had said the company was hoping that the battle for new deals would reach its profit margins in the second half.
"The intensity of competition could increase in some accounts, with some competitors looking to take their part in the early phases of 5G," Nokia added.
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