Nokia Expects to Exceed 2021 Financial Guidance

Nokia said it will exceed its financial guidance for 2021 after generating more income than anticipated in the fourth quarter. The company stated its underlying business performed largely as expected during the quarter.

Other operating income was higher than had been foreseen, including further benefits from venture fund investments which Nokia explained resulted in its operating margin exceeding guidance. Finnish company estimates net sales of about €22.2 billion, which falls within its previous guidance of €21.7 billion to €22.7 billion, and a comparable operating margin of 12.4 to 12.6 percent, compared with the 10 to 12 percent previously forecast.

The vendor also cited further benefits including a one-off software contract in the second quarter, bad debt provision reversals, and some other one-time benefits. Nokia introduced comparable operating margin guidance of 11 to 13.5 percent for 2022. The company said the new guidance considers estimated continued improvements in the underlying business, supply constraints, and cost inflation, with the year-on-year progression also impacted by the significant one-offs seen in 2021.