Nokia (NYSE:NOK) shares rose more than 3% pre-market today despite the company's announcement of a Q1 profit that was smaller than expected, affected by subdued demand for 5G equipment in North America and India.

The Finnish telecommunications equipment maker recorded a first-quarter operating profit of 597 million euros, up from 479 million euros the previous year. However, this was below the 663 million euros analysts had projected.

Earnings per share for the first quarter were 0.09 euros, slightly above the consensus estimate of 0.08 euros. Revenue for the quarter was reported at 4.67 billion euros, falling short of expectations of 5.41 billion euros.

Despite the revenue shortfall, Nokia saw a significant improvement in its comparable gross margin, which increased to 48.6% from 37.7% in the same quarter last year.

The Mobile Networks segment, which includes 5G equipment, saw a 37% drop in sales when adjusted for currency effects. Nokia described this quarter as the lowest point of the year and expects sales to rebound for the remainder of 2024.

Nokia maintained its January guidance, predicting a comparable operating profit for 2024 to be between 2.3 billion and 2.9 billion euros.