Nokia stock spiked as much as 17% on Thursday during premarket hours after growth in the company’s 5G business helped drive a revenue and profit beat in the first quarter.
Revenue climbed 3% to €5.08 billion in the quarter, topping analysts’ expectations by €330 million.
Net profit also came in €90 million ahead of analysts’ expectations at €373 million.
Diluted EPS moved to €0.05 in the quarter as well, compared to negative €0.02 in Q1 2020.
Revenue from Nokia’s all-important network infrastructure business rose 28% on a constant currency basis to €1.7 billion.
“We have delivered a robust start to the year with strong net sales, operating margin, and cash flow. Today’s results demonstrate that we are on track to deliver on our three-phased plan to achieve sustainable, profitable growth and technology leadership as announced at our recent Capital Markets Day,” Pekka Lundmark, Nokia’s President and CEO, wrote in a press release.
“I was particularly pleased by strong sales growth across our Network Infrastructure business group driven by increasing demand for next-generation connectivity,” Lundmark added.
Some analysts had predicted Nokia might struggle due to the global semiconductor shortage, but Lundmark said he was “proud” of his company’s ability to deliver to customers in spite of supply constraints.
Nokia guided for €20.6 billion to €21.8 billion in net sales for 2021 with a 7%-10% operating margin.