Nokia Stock Gains After Q3 Results, Expands Margin, Reiterates FY21 Outlook

Nokia Oyj NOK reported third-quarter FY21 net sales growth of 2% year-on-year to €5.4 billion.
Supply chain and Mobile Networks North America's headwinds constrained constant currency sales growth of 2%.
Network Infrastructure sales grew 6% Y/Y constant currency, and Cloud & Network Services sales increased 12%.
Margins: The gross margin expanded by 360 bps to 40.7%, reflecting continued strong execution across the business. Comparable gross margin grew 340 bps to 40.8%.
Mobile Networks' comparable gross margin of 37.8%, up 220 bps, showed better cost competitiveness.
The operating margin expanded 270 bps to 9.3%. Comparable operating margin increased 250 bps to 11.7%.
Comparable EPS was €0.08 versus €0.05 last year.
Nokia held €4.3 billion in cash and equivalents and generated €0.7 billion in free cash flow.
Outlook: Nokia reiterated FY21 net sales of €21.7 billion - €22.7 billion and comparable operating margin of 10% - 12% and now expect to be towards the upper end of the margin range considering continued strong performance.
Price Action: NOK shares traded higher by 3.65% at $5.97 in the premarket session on the last check Thursday.

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