Shares of Finnish mobile network builder Nokia (NYSE:NOK) jumped as much as 10.6% higher on the Helsinki exchange this morning -- and American depositary receipts followed suit in early Thursday trades, rising nearly 8% -- after the company reported results for the second quarter of 2014.
Sales from continuing operations fell 7% year-over-year, stopping at $4.0 billion. Adjusted earnings from continuing operations rose from $0.07 to $0.08 per diluted share. Both figures were slightly above analyst expectations, which called for earnings of $0.07 per share on $3.9 billion in sales.
Nokia recently sold its devices and services business to Microsoft (NASDAQ:MSFT), with the deal closing approximately one month into the second quarter. About $6.5 billion of the $6.7 billion cash proceeds from this deal arrived in Nokia's coffers during the second quarter as a financial cash flows item. The remainder should follow in the second half of 2014. Furthermore, the agreement made Microsoft a major customer of Nokia's technology licensing operations.
According to Nokia's press materials, core operations in Nokia Networks rebounded from a first-quarter market trough. Networks sales increased by 10% from the first quarter, driving an overall 10% sequential rebound. The networks segment now accounts for 87% of Nokia's total revenues.
"Nokia's second quarter performance shows the strength of the company today," said CEO Rajeev Suri in a prepared statement. "Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent."