Nokia says operating margin higher than expected

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Nokia says operating margin higher than expected

The logo and ticker for Nokia are displayed on the floor of the New York Stock Exchange NYSE in New York, U.S. May 21, 2018. REUTERS Brendan McDermid File Photo

HeLSINKI, Jan 11 Reuters -- Finnish telecoms equipment maker Nokia NOKIA.HE gave its first guidance for 2022, easing investors' concerns about the global chip shortage's impact on its operations.

Nokia expects a comparable operating margin of 11 -- 13.5% in 2022, sending its shares up 2.8% in the morning after the announcement.

Inderes analyst Atte Riikola told Reuters that the business turnaround is still progressing well and that no offset is coming from cost inflation or component shortage.

The company said it expects to surpass its 2021 earnings guidance, with its venture fund investments driving the boost.

Nokia estimates a comparable operating margin of 12.4 -- 12.6%, above its previous guidance of 10 -- 12%, and net sales of 21.7 -- 22.7 billion euros, within its previously announced range.

The company said that its underlying business performed largely as expected in the fourth quarter.

Other operating income was higher than expected including further benefits from venture fund investments, leading to a stronger comparable operating margin than the 2021 guidance, it said in a statement.

Nokia expects Q 4 revenue of 6.4 billion euro, below expectations of 6.5 billion euro, according to Reuters calculations.

The company is due to report full-year results on February 3.