Nokia, a Finnish telecoms equipment maker, issued its initial guidance for 2022 on Tuesday, assuaging investor concerns about the impact of the worldwide chip shortage on its operations.

Nokia's shares rose 2.8 % in the morning session after the company stated it expected a comparable operating margin of 11-13.5 % in 2022.

"The outlook shows that the business turnaround is still progressing well and no offset is coming from cost inflation or component shortage," said Atte Riikola, an analyst with Inderes.

Nokia Corporation

The company also stated that it expects to beat its earnings estimate for 2021, thanks to venture fund investments.

Nokia forecasted a similar operating margin of 12.4-12.6 % for the fiscal year 2021, up from its previous goal of 10-12 %, and net sales of 21.7-22.7 billion euros, in line with its previous guidance.

In the fourth quarter, the company's underlying business performed roughly as predicted, according to the company.

"However, other operating income was higher than expected including further benefits from venture fund investments, leading to a stronger comparable operating margin exceeding the 2021 guidance," the company stated in a statement.

According to a major newswires calculation, Nokia now forecasts Q4 sales of 6.4 billion euros, which is lower than the 6.5 billion euros expected.

On February 3, the corporation is expected to release its full-year results.