Nokia Earnings Rise

Nokia (NOK) rose 4% early Thursday after the Finnish wireless giant posted a 22% sales rise and matched handset-sales targets.

For the second quarter ended June 30, Nokia made 1.14 billion euros ($1.44 billion), or 28 euro cents a share, up from the year-ago 799 million euros, or 18 euro cents a share. The latest quarter includes a 276 million-euro gain on the proceeds of the share of Turkish wireless operator Telsim. Excluding that gain, latest-quarter earnings were 23 euro cents a share, in line with the consensus estimate.

Sales rose to 9.81 billion euros, or $12.36 billion, easing past the $11.81 billion Thomson First Call target.

Nokia said it shipped 78.4 million handsets during the quarter, nudging past the 78 million-unit estimate. Nokia said its market share fell a point sequentially to 34% but was up from the year-ago 33%. Nokia's comments come a day after rival Motorola ( MOT) posted a blowout quarter, saying it took market share despite the best efforts of its competitors.

Sequential market share gains in Europe, Asia-Pacific and China were more than offset by sequential market share declines in North America, Latin America, the Middle East and Africa, Nokia said. Volumes in North America fell, hit by a significant order cancellation at a prepay customer. While Nokia experienced sequential volume growth in Latin America, it was slower than the market growth. Nokia's significant sequential market share growth in Europe was driven by very strong gains in its European WCDMA market share.

Nokia's average selling price fell to 102 euros from 105 euros a year ago and 103 euros in the first quarter. The drop was driven by a higher proportion of lower-priced devices and the ramp-up of new midrange products only toward the end of the quarter, balanced by strong sales of higher-priced products including WCDMA and Nokia Nseries devices.

"In the second quarter, Nokia delivered strong year-on-year growth in net sales, operating profit and EPS," CEO Olli-Pekka Kallasvuo said. "At an industry level, the markets for both mobile devices and mobile infrastructure continued to show healthy growth."

The company said it expects to hold ground in market share for the third quarter as the worldwide handset market will continue to grow, but at a slower pace than in the second quarter. Nokia reiterated its forecast of 15% industrywide growth from last year's sales of 795 million cell phones.

More from Technology

Shares of Square Slip After Venmo Debit Card Announcement

Shares of Square Slip After Venmo Debit Card Announcement

3 Fierce Chinese Tech Stocks to Gamble on Right Now

3 Fierce Chinese Tech Stocks to Gamble on Right Now

Chinese Investment Crackdown Could Stunt Growth at Alibaba, Tencent and Others

Chinese Investment Crackdown Could Stunt Growth at Alibaba, Tencent and Others

How to Play Nvidia and Intel on a Trade War With China

How to Play Nvidia and Intel on a Trade War With China

Trump's Trade War Sends This Bellwether Tech Index Below Key Technical Level

Trump's Trade War Sends This Bellwether Tech Index Below Key Technical Level