NEW YORK (TheStreet) -- Shares of Nokia (NOK - Get Report) were gaining 4.9% to $6.91 in pre-market trading Thursday after the telecommunications company reported its second quarter results and said it is going ahead with its proposed acquisition of Alcatel-Lucent (ALU).
Nokia reported earnings of 9 euro cents a share for the second quarter. The company said revenue grew 9.2% year over year to 3.21 billion euros in the quarter due to higher networks sales and HERE maps.
Nokia said it expects network revenue to grow between 8% and 11% in 2015, and HERE revenue to grow between 9% and 12%.
"I am particularly pleased by Nokia Networks, which delivered improved performance overall, despite a year-on-year decline in net sales on a constant currency basis," CEO Rajeev Suri said in a statement. "Software sales were up significantly; core networking sales improved; we saw a reduced impact of strategic entry deals; Global Services had one of its best quarters in the history of the company; and costs remained well under control."
Nokia noted that it recently received antitrust clearance for its Alcatel-Lucent acquisition from European Commission, Albania, Brazil, Canada, Colombia, Russia, and Serbia, and that the antitrust review period in the U.S. has expired. The companies said they will continue working with other authorities to close any outstanding reviews quickly.
TheStreet Ratings team rates NOKIA CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOKIA CORP (NOK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
You can view the full analysis from the report here: NOK Ratings Report