Shares of Nokia Corporation (NOK) jumped as much as 9% in early trading on Tuesday following the announcement that the company is raising its full-year 2021 guidance.
Nokia is a multinational telecom, information technology, and consumer electronics company. Shares have gained 38% year-to-date. (See Nokia stock charts on TipRanks)
The company said it is raising its full-year 2021 guidance due to continued strength in the second quarter.
The company will release its revised outlook along with its second-quarter results on July 29.
Nokia previously guided for sales in the range of €20.6 – €21.8 billion, and operating margin of between 7% and 10%.
Additionally, the company guided for positive free cash flow along with a return on invested capital in the range of 10% – 15%.
Pekka Lundmark, President and CEO of the company, said, “We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year.”
The Earnings Whisper numbers for Q2 earnings and revenue are $0.06 per share and $5.96 billion, respectively.
Despite the improved guidance expectation, Barclays analyst Andrew Gardiner reiterated a Hold rating on NOK with a $5 price target. This implies almost 9% downside potential over the next 12 months.
Overall, the stock has a Strong Buy consensus rating based on 9 Buys and 3 Holds. The average Nokia price target of $6.04 implies 3.6% upside potential to current levels.