Nokia today raised its third-quarter sales and earnings forecast due to strong demand for mobile phones.
The company's shares were up 7.2 per cent at €11.26, outpacing the sector index. For the year, the share remains 18 per cent in the red.
The upgrade is the first bright spot for Nokia since April when the firm admitted it was losing market share to rivals due to a patchy handset portfolio.
It has since cut prices on selected phone models, sacrificing profitability to defend market share. It said on Thursday it expected its third-quarter handset market share to rise from the level in the second quarter, buoyed by operations in Europe, the Middle East and Africa.
Nokia said it now expected July-September earnings per share of between 11 and 13 cent, up from a previous forecast of between 8 and 10 cent but still well down from 17 cent a year ago.
Sales are forecast at between €6.8 billion and €6.9 billion, roughly flat year-on-year but up from a previous prediction of between €6.6 billion and €6.8 billion.
Analysts said although the news was welcome, Nokia still was hampered with a weak phones portfolio that would not improve in the near term.