RTTNews | Jan 11, 2022 04:34AM EST

04:34 Tuesday, January 11, 2022 (RTTNews.com) - Shares of Nokia Corp. (NOK) were gaining around 3 percent in the morning trading in Helsinki after the Finnish communications company updated its fiscal 2021 forecast for comparable operating margin and net sales. The company also sees higher margin in fiscal 2022.

In its trading update, Nokia said it expects to exceed 2021 financial guidance. Nokia now estimates net sales of approximately 22.2 billion euros, within its previous guidance of 21.7 billion euros to 22.7 billion euros. Comparable operating margin is now expected to be 12.4 percent to 12.6 percent above its previous guidance of 10 percent to 12 percent.

In the fourth quarter, Nokia said its underlying business performed largely as expected. However, other operating income was higher than expected including further benefits from venture fund investments, leading to a stronger comparable operating margin exceeding the 2021 guidance.

For fiscal 2022, Nokia sees comparable operating margin guidance of 11 percent to 13.5 percent. The new guidance considers estimated continued improvements in the underlying business, supply constraints and cost inflation, with the year-on-year progression also impacted by the significant one-offs seen in 2021.

The company will release its fourth quarter and full year 2021 financial results on February 3 when it will also revisit its longer-term outlook.

In Finland, Nokia shares were trading at 5.59 euros, up 2.5 percent.

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