- Nokia’s Q2 net sales totaled €4.55 billion, which fell short of expectations of €4.78 billion.
- Mobile Networks net sales were €1.73 billion, below the projected €1.92 billion.
- Network Infrastructure net sales were €1.90 billion, meeting the estimate.
- Cloud & Network Services had net sales of €557 million, slightly under the €570 million estimate.
- Nokia Technologies net sales were consistent at €357 million with estimates of €357.3 million.
- The adjusted operating profit was €301 million, missing the expected €399.4 million.
- Adjusted operating margin was 6.6% as opposed to the anticipated 8.44%.
- Adjusted gross margin came in at 44.7%, exceeding the estimate of 43.7%.
- Adjusted earnings per share (EPS) landed at €0.040, below the estimate of €0.06.
- The net cash balance at the end of the period was €2.88 billion.
- Operating profit was reported at €81 million.
- Despite challenges, the Mobile Networks division showed an operating profit of €77 million, surpassing the estimated €62 million.
- Nokia expects strong growth in Network Infrastructure and Cloud & Network Services divisions for the remainder of the year.
- The company projects stable net sales for Mobile Networks and around €1.1 billion in operating profit for Nokia Technologies.
- CEO Justin Hotard stresses the importance of unifying corporate functions to streamline operations and enhance corporate culture.
- Nokia forecasts a stronger performance in the second half of the year, especially in Q4.
- The full-year adjusted operating profit outlook has been revised to between €1.6 billion and €2.1 billion.
- Nokia plans to discuss its strategy at the Capital Markets Day in New York on November 19.
- Upcoming 3Q outlook suggests flat net sales due to normal seasonality and a potentially more challenging product mix.
- Market analyst ratings include 15 buys, 10 holds, and 5 sells for Nokia.
A look at Nokia OYJ Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts suggest that Nokia OYJ is positioned for a positive long-term outlook based on the Smartkarma Smart Scores. With a strong Value score of 4, the company is perceived to be undervalued in the market, indicating potential for growth. Additionally, Nokia OYJ shows resilience with a score of 4, highlighting its ability to weather market uncertainties and maintain stability over time. Despite a lower Momentum score of 2, the company’s overall solid performance across other factors bodes well for its future prospects.
Furthermore, Nokia OYJ‘s focus on growth and dividends, scoring 3 on both factors, reflects its commitment to expanding operations and returning value to shareholders. With a diverse business portfolio spanning communication networks, production facilities, and software development, Nokia OYJ is poised to capitalize on opportunities in the evolving technology sector and enhance its position in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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