Nokia shared an update to its financial guidance for 2021, ahead of the scheduled release of its fourth-quarter and full-year 2021 financial results on February 3, 2022. A new comparable operating margin guidance for 2022 has also been introduced.
Based on preliminary and unaudited 2021 financials, Nokia’s underlying business performed largely as expected in Q4 2021, thanks to further benefits in venture fund investments. Overall, the telecom vendor estimates net sales of approximately €22.2bn, falling within its previous guidance of €21.7 to 22.7bn and a stronger comparable operating margin of 12.4 to 12.6%, considerable above its previous guidance of 10 to 12%.
For the financial year 2022, Nokia would follow a new comparable operating margin guidance between 11% to 13.5%. This 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.
Looking back to Nokia Q3 2021 financial results, Pekka Lundmark, president & CEO, already mentioned expectations to be at the upper-end of its comparable operating margin range. “As we look ahead, we believe we are well-positioned to capitalize on strong demand in our end markets through strengthened technology leadership and improved cost competitiveness,” expressed Lundmark.