NEW YORK (TheStreet) -- Shares of Vodafone Group (VOD) are surging, up 5.53% to $34.84 in late afternoon trading on Tuesday, following the world's second biggest mobile operator's updated full year earnings forecast, citing improving demand in its European markets and investment efforts helping reduce the drop in revenue.
The company now expects full year core earnings of between $18.5 billion to $18.9 billion, in the high range of its previous guidance range of $18.15 billion to $18.9 billion.
Vodafone also increased the interim dividend by 2% to about 6 cents.
In its fiscal second quarter, the U.K.-based company reported better than expected earnings and in-line revenue.
Vodafone posted earnings of about 5 cents per share for the quarter, higher than the 3 cents per share analysts expected. Revenue was up 9% year over year to about $33.12 billion, in line with analysts' estimates for the quarter.