Finnish telecoms equipment group Nokia reported quarterly operating profit that topped market estimates, largely thanks to strong demand for 5G speeds and expects signs of an easing global processor shortage.
The stock is up 4%.
The semiconductor shortage that began at the height of the pandemic in 2020 has affected a number of industries, including telecommunications.
Nokia said it expects pressures to ease in the second half of 2022 and the first half of next year.
The overall path in the semiconductor industry is positive for now, but we continue to have constraints in the second quarter, CEO Pekka Lundmark said.
“Our order book would allow for faster growth if more data were available,” he added.
Demand for processors is expected to fall later this year as smartphone and PC sales slow, increasing supply in other industries.
Estimates call for mobile phone sales to fall 7.1% this year, revising the previous estimate of 2.2% growth.
Nokia’s comparable operating profit for the second quarter rose to 714 million euros from 682 million euros last year, beating estimates for 636.52 million euros.
Nokia’s net sales rose 11% to 5.87 billion euros, against estimates of 5.60 billion euros.
Source: Capital
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