HELSINKI (Reuters) – Finnish telecommunications equipment maker Nokia on Tuesday gave its first forecast for 2022, allaying investor concerns about the impact the global chip shortage could have on its operations.
Nokia said it expected a comparable operating margin of 11-13.5% in 2022, pushing its shares up 2.8% in morning trading after the announcement.
“The outlook shows that the business recovery is still progressing well and that no compensation comes from cost inflation or component shortages,” Inderes analyst Atte Riikola told Reuters.
The company said it also expects to exceed its 2021 profit forecast, with its investments in venture capital funds driving the boost.
Nokia estimated a comparable operating margin for full year 2021 of 12.4-12.6%, above its previous forecast of 10-12%, and net revenue of 21.7 to 22.7 billion euros, within the range previously announced.
The company said its underlying business performed largely as expected in the fourth quarter.
“However, other operating income was higher than expected, including the added benefits of investing in venture capital funds, leading to a higher comparable operating margin exceeding the 2021 forecast,” a- he said in a statement.
Nokia is now counting on sales of 6.4 billion euros in the fourth quarter, below expectations of 6.5 billion euros, according to Reuters calculations.
The company is due to release its annual results on February 3.
(Reporting by Anne Kauranen, Supantha Mukherjee and Essi Lehto; editing by Jason Neely, Kirsten Donovan and David Evans)