Nokia stock popped on Tuesday after the maker of 5G wireless network equipment said it planned to raise its full-year outlook amid a stronger-than-expected June quarter.
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Finland-based Nokia (NOK) expects to provide updated financial guidance on July 29. Nokia had forecast full-year revenue in a range of $24.4 billion to $25.72 billion when converted to U.S. dollars.
Nokia stock climbed 9% to near 5.85 on the stock market today.
“We were not shocked to hear that the June quarter tracked better than the below seasonal expectations, but we were surprised that management felt enough conviction to increase the full-year forecast,” Raymond James analyst Simon Leopold said in a note to clients.
Nokia stock competes versus Sweden’s Ericsson (ERIC) and China’s Huawei Technologies. Network gear makers are just some 5G stocks to watch and buy.
Nokia Stock Boost Possible From China Mobile Contract
Leopold added that Nokia could win a part of a contract from China Mobile (CHL).
Nokia stock holds a Relative Strength Rating of 80. Ericsson stock rose 35% in 2020 as it gained market share in 5G wireless network equipment. However, Ericsson stock has underperformed thus far in 2021 only holds a Relative Strength Rating of 45 out of a best-possible 99.
“Our industry contacts remain skeptical regarding the company (Nokia) abandoning aggressive pricing practices,” Leopold added. “We envision an opportunity in China 5G that could lead to a further upward sales revision but would likely dilute margin.”
In the U.S., Ericsson last year won more 5G wireless business from Verizon Communications (VZ) at the expense of Nokia. However, Dish Network (DISH) recently picked Nokia for its 5G wireless network infrastructure.
Getting More 5G Contracts
Outside of China, both Ericsson and Nokia have won more 5G wireless network orders as U.S. and other countries steer away from Huawei equipment over national security concerns.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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