Nokia: shares inch up after Q3 results in line
(CercleFinance.com) - Nokia shares are up slightly on Thursday, after the Finnish company reported "solid" third-quarter results, as well as an "excellent" momentum in orders.
The telecoms equipment maker said that net sales over the past quarter reached 5.5 billion euros, compared to 5.5 billion euros in the third quarter of 2017, although its sales grew by 1% year-on-year at constant currencies.
Another positive, Nokia's networks business saw its sales grow by 3% to 4.9 billion euros.
"This third-quarter report is again a bit mixed with higher sales and the return of growth in networks, which is positive, but again lower than expected gross and EBIT margin," French broker Oddo BHF reacted.
Indeed, Nokia's operating profit fell to 487 million euros in the third-quarter, from 668 million euros a year ago.
"After many quarters of poor execution, Nokia is reporting a largely in-line third quarter," UBS analysts added.
The company also unveiled a new restructuring program, aiming to reduce annualised operating costs and production overheads by 700 million euros by the end of 2020 compared to the end of 2018.
Out of this amount, 500 million euros are expected from operating expenses.
Nokia said that it expects to make savings from investments in digitalisation, automation and further process simplification.
The group also announced today that it has extended its patent license agreement with Samsung, which would was due to expire at the end of 2018.
Under the deal, Samsung will make payments to Nokia for a "multi-year" period from 1 January 2019. The terms of the agreement have not yet been given.
All these announcements resulted in the share rising 0.6% to 4.7 euros on Euronext Paris.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The telecoms equipment maker said that net sales over the past quarter reached 5.5 billion euros, compared to 5.5 billion euros in the third quarter of 2017, although its sales grew by 1% year-on-year at constant currencies.
Another positive, Nokia's networks business saw its sales grow by 3% to 4.9 billion euros.
"This third-quarter report is again a bit mixed with higher sales and the return of growth in networks, which is positive, but again lower than expected gross and EBIT margin," French broker Oddo BHF reacted.
Indeed, Nokia's operating profit fell to 487 million euros in the third-quarter, from 668 million euros a year ago.
"After many quarters of poor execution, Nokia is reporting a largely in-line third quarter," UBS analysts added.
The company also unveiled a new restructuring program, aiming to reduce annualised operating costs and production overheads by 700 million euros by the end of 2020 compared to the end of 2018.
Out of this amount, 500 million euros are expected from operating expenses.
Nokia said that it expects to make savings from investments in digitalisation, automation and further process simplification.
The group also announced today that it has extended its patent license agreement with Samsung, which would was due to expire at the end of 2018.
Under the deal, Samsung will make payments to Nokia for a "multi-year" period from 1 January 2019. The terms of the agreement have not yet been given.
All these announcements resulted in the share rising 0.6% to 4.7 euros on Euronext Paris.
Copyright (c) 2018 CercleFinance.com. All rights reserved.