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NEW YORK (TheStreet) -- Shares of Nokia (NOK) - Get Nokia Corporation Sponsored American Depositary Shares Report were gaining 9.3% to $7.26 on Thursday after the telecommunications equipment company reported its third quarter financial results.

Nokia reported earnings of 8 euro cents a share for the third quarter, above analysts' estimates of 7 euro cents a share for the quarter. Revenue fell 1.6% year over year to 3.04 billion euros for the quarter, compared to analysts' estimates of 3.66 billion euros.

"The performance at Nokia Networks was the highlight of the quarter, and allowed us to raise our full-year outlook for that business," President and CEO Rajeev Suri said in a statement. "Even if I am not pleased with the overall sales development, our strong profitability is testament to the strength of our operating model."

The company noted that it expects to complete its takeover of Alcatel-Lucent (ALU) in the first quarter of 2016.

Nokia also announced that it will return 4.4 billion euros to its shareholders through distributions and buybacks.

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TheStreet Recommends

TheStreet Ratings team rates NOKIA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate NOKIA CORP (NOK) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, expanding profit margins and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: NOK

NOK data by YCharts

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