Nokia Shares Drop 8% After Preliminary Q2 Earnings
Nokia (NYSE:NOK) announced preliminary results for the Q2 that were below expectations, leading to a more than 8% decline in its shares on Friday.
Nokia anticipates Q2 sales of 5.7 billion euros, falling short of the Street estimate of 6 billion euros. The company also expects a comparable operating profit margin of 11%.
Consequently, Nokia has revised its full-year sales forecast to a range of 23.2-24.6 billion euros, which is lower than the previously anticipated range of 24.6-26.2 billion euros. The outlook for the comparable operating margin range has also been narrowed to 11.5-13%, compared to the previous range of 11.5-14%.
In an update, Nokia explained that these adjustments primarily pertain to its Network Infrastructure and Mobile Networks business groups. The company attributed the weaker demand outlook for the latter half of the year to a combination of macroeconomic factors and customers' inventory management. Customer spending plans have been increasingly affected by high inflation and rising interest rates, leading to delays in certain projects, notably in North America, which is now expected to occur in 2024.
| Symbol | Price | %chg |
|---|---|---|
| SUPR.JK | 39000 | 0 |
| 178320.KQ | 26450 | 0 |
| 178320.KS | 29900 | 0 |
| 4333.HK | 250 | 0 |
Nokia Stock Gains 3% Following Q1 Results
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.
Nokia Shares Drop 8% After Preliminary Q2 Earnings
Nokia (NYSE:NOK) announced preliminary results for the Q2 that were below expectations, leading to a more than 8% decline in its shares on Friday.
Nokia anticipates Q2 sales of 5.7 billion euros, falling short of the Street estimate of 6 billion euros. The company also expects a comparable operating profit margin of 11%.
Consequently, Nokia has revised its full-year sales forecast to a range of 23.2-24.6 billion euros, which is lower than the previously anticipated range of 24.6-26.2 billion euros. The outlook for the comparable operating margin range has also been narrowed to 11.5-13%, compared to the previous range of 11.5-14%.
In an update, Nokia explained that these adjustments primarily pertain to its Network Infrastructure and Mobile Networks business groups. The company attributed the weaker demand outlook for the latter half of the year to a combination of macroeconomic factors and customers' inventory management. Customer spending plans have been increasingly affected by high inflation and rising interest rates, leading to delays in certain projects, notably in North America, which is now expected to occur in 2024.
