Nokia: stock hit as 2024 earnings forecast cut
(CercleFinance.com) - On Thursday, Nokia published slightly better-than-expected Q2 results, but also cut its annual targets, which weighed heavily on its share price at the start of trading.
The Finnish network equipment manufacturer explains that it now expects operating profit for 2024 to be in the middle, or even at the bottom, of a range of E2.3bn to E2.9bn that it had set itself for the year.
Nokia says that its sector is showing signs of stabilization, and that an acceleration in sales growth is still envisaged for H2.
But the company also points out that this turnaround is materializing later than expected.
Q2 net sales fell by 18% to E4.47bn, with operating income down 8% to E432m.
EPS came in at E0.06, above the consensus of E0.05, but analysts point out that this profit was inflated by an exceptional gain of E150m linked to the end of its contract with AT&T.
Following this publication, Nokia shares listed on Euronext Paris fell by more than 9% on Thursday morning, with investors preferring to steer clear of the stock in anticipation of a clearer upturn in the group's performance.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The Finnish network equipment manufacturer explains that it now expects operating profit for 2024 to be in the middle, or even at the bottom, of a range of E2.3bn to E2.9bn that it had set itself for the year.
Nokia says that its sector is showing signs of stabilization, and that an acceleration in sales growth is still envisaged for H2.
But the company also points out that this turnaround is materializing later than expected.
Q2 net sales fell by 18% to E4.47bn, with operating income down 8% to E432m.
EPS came in at E0.06, above the consensus of E0.05, but analysts point out that this profit was inflated by an exceptional gain of E150m linked to the end of its contract with AT&T.
Following this publication, Nokia shares listed on Euronext Paris fell by more than 9% on Thursday morning, with investors preferring to steer clear of the stock in anticipation of a clearer upturn in the group's performance.
Copyright (c) 2024 CercleFinance.com. All rights reserved.